Audit 105: The Audit Risk Model - Foundational Principles

Overview

The Audit Risk Model - Understanding Foundational Principles is a critical foundational course. Financial statement auditors are engaged to provide reasonable assurance that financial statements are not materially misstated, whether due to fraud or error. Professional standards require auditors to obtain sufficient and appropriate evidence to support that opinion. It is critical for effective and efficient auditors to have a clear understanding of all the important elements and concepts related to properly identifying, evaluating, and deciding how to respond to risk in a financial statement audit. Note: This course is recommended as a part of a 16-hour audit skills curriculum for beginning auditors, while it is also appropriate for anyone who has the need to understand the foundational principles of the audit risk model. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

None

Objectives

Upon completion of this course, you will be able to...

• Identify the basis for an audit
• Recall the auditor's professional responsibilities
• Differentiate the responsibilities of reporting entity management and auditors
• Recognize important audit concepts, such as materiality
• Recall the foundational principles of the audit risk formula
• Identify considerations when Identifying and assessing risk of material misstatement

Highlights

The major topics covered in this course include:

• The reason that entities engage a financial statement audit
• The applicable financial reporting frameworks available
• The various phases of a financial statement audit
• Evaluating and documenting audit risk, both at the overall and relevant assertion level
• Case study differentiating high-risk audit engagements and higher-risk audit areas