Author : | Colten Christensen, Author |
Course Length : | Pages: 26 ||| Word Count: 13,306 ||| Review Questions: 6 ||| Final Exam Questions: 10 |
CPE Credits : | 2.0 |
IRS Credits : | 0 |
Price : | $17.95 |
Passing Score : | 70% |
Course Type: | NASBA QAS - Text - NASBA Registry |
Technical Designation: | Technical |
Primary Subject-Field Of Study: | Auditing - Auditing for Course Id 1880 |
Description : | Every audit requires planning. Audit planning requires evaluating materiality and risk. Both materiality and risk evaluation require judgement from the auditor because both concepts directly impact the auditor's planned audit evidence. Materiality is important because the auditor provides assurance to financial statement users that the financial statements are free of material misstatements. This requires the auditor to develop a preliminary judgment about materiality when planning the audit, which will provide the basis for that important assurance. In addition, the auditor must consider risk to effectively address the most appropriate risks for each engagement. The auditor's understanding of the entity and its environment, including its internal control, provide a basis for the auditor's assessment of the risk of material misstatement. Using the audit risk model and tolerable misstatement for each account, the auditor determines the audit evidence needed to achieve an acceptable level of audit risk for the engagement. |
Usage Rank : | 50000 |
Release : | 2022 |
Version : | 1.0 |
Prerequisites : | None. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
Audit Risk
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Advance Preparation : | None. |
Delivery Method : | QAS Self Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 19-Feb-2024 |
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. |
Approved Audience : | NASBA QAS - Text - NASBA Registry - 1880 |
Keywords : | Auditing, Assessing, Audit, Risk, Materiality, cpe, cpa, online course |
Learning Objectives : |
Course Learning Objectives At the end of this course, students will be able to:
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Course Contents : | Chapter 1 - Assessing Audit Risk and Materiality Course Learning Objectives Audit Risk and Materiality Introduction Requirements with the Reporting Title Requirements with the Audit Report Address Requirements for the Introductory Paragraph Requirements for the Scope Paragraph Requirements for the Opinion Paragraph Requirements for the Name of the CPA Firm Requirements for the Audit Report Date The Definition of Materiality How to Apply Materiality Preliminary Assessment Factors Affecting the Preliminary Judgement Materiality Evaluation The Importance of Certain Misstatements Materiality Example Estimating Misstatements Assessing the Risk of Material Misstatements What is the Audit Risk Model? What is Planned Detection Risk? What is Inherent Risk? What is Control Risk? Audit Risk that is Acceptable Risk Factors in the Audit Risk Model Deciding Acceptable Risk What is Engagement Risk? Controlling Acceptable Audit Risk Users that Rely on Financial Statements Size of the Client Ownership Distribution Liabilities Problems After the Report Liquidity Profits or Losses Growth Methods The Client’s Operations Assessing Management Management Integrity Audit Risk Decision The Inclusion of Inherent Risk Factors of Inherent Risk The Client’s Business Previous Audit Results Initial Engagements Transactions Between Related Parties Atypical Transactions Recording Transactions Population Makeup Fraudulent Reporting Evaluating Information Inherent Risk Assessment Responding to Risk Assessing for Each Cycle Associating Risk with Different Objectives Measuring Model Components Worksheet Example From Materiality and Risk to Evidence A Brief Summary Additional Information Glossary |