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Author: |
Colten Christensen, Author |
Course Length: |
Pages: 76 ||| Word Count: 17,976 ||| Review Questions: 6 ||| Final Exam Questions: 10 |
CPE Credits: |
2.0 |
IRS Credits: |
0 |
Price: |
$17.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Auditing |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course explains how auditors apply materiality throughout every phase of a financial statement audit, from establishing thresholds to evaluating misstatements.
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Frequently Asked Questions: |
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Description: |
Materiality plays a central role in every phase of the audit process, influencing how auditors assess risk, design procedures, evaluate evidence, and form audit conclusions. This course explores how auditors apply materiality throughout an audit engagement, beginning with the establishment of materiality thresholds and continuing through sampling decisions, substantive testing, and the evaluation of identified misstatements. Participants will examine how auditors use professional judgment to determine appropriate materiality benchmarks, adjust materiality based on engagement risk, and revise materiality assessments as new information emerges during the audit. The course also examines the relationship between materiality and audit testing, including how materiality affects sampling approaches, substantive procedures, and the allocation of audit resources. In addition, participants will learn how auditors evaluate identified misstatements, distinguish between trivial and material issues, and communicate significant findings to management and those charged with governance. Through practical discussion of risk assessment, sampling strategies, and final materiality evaluations, this course provides a comprehensive understanding of how materiality influences audit decision-making from planning through the issuance of the audit opinion. |
Usage Rank: |
45000 |
Release: |
2026 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: A Definitive Guide to Auditing CPA Courses
Internal: Compilation CPE Courses for CPAs
External: Materiality (auditing)
External: Understanding the Audit Risk Model: Key Insights and Assessments
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
27-Jun-2026 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Applying Materiality and Audit Testing in Financial Statement Audits - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives By the end of this course, participants will be able to:
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Course Contents: |
Chapter 1 - Applying Materiality and Audit Testing in Financial Statement Audits Course Learning Objectives Applying Materiality in Audit Engagement Establishing Materiality Thresholds Common Materiality Benchmarks Industry-Specific Considerations Adjusting Materiality Based on Engagement Risk Revising Materiality During the Audit Sampling and Audit Testing Decisions Relationship Between Materiality and Sampling Statistical vs. Nonstatistical Sampling Designing Audit Procedures Based on Risk Extent and Timing of Substantive Testing Efficient Allocation of Audit Resources Evaluating Audit Findings and Misstatements Accumulating Identified Misstatements Qualitative Considerations in Misstatement Evaluation Clearly Trivial Thresholds Communicating Findings to Management and Governance Glossary |
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