Conduct risk assessment the right way (bold)
Regardless of the size of your client or audit budget, there are specific requirements in accounting standards and generally accepted auditing principles (GAAP) related to auditing internal control for risk assessment purposes.
Learn about the impact internal control has on your audit engagements and how to avoid common audit missteps identified through our peer review.
You'll learn
- The audit risk model
- Auditor responsibilities in risk assessment
- How to correctly evaluate internal control
- The relationship between AU-C 315 and AU-C 330
Learning Objectives
· Recall the definitions of control, control risk, and what encompasses a client’s internal control.
· Recall the intent of AU-C section 315A, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, and AU-C section 330, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained, including the interpretation of requirements.
· Recognize auditors’ responsibilities when gaining an understanding of a client and their internal control.
· Recognize the impact of a client’s internal control on the risk assessment and the nature, timing, and extent of further procedures.
Major Topics
· The audit risk model
· Key steps in evaluating internal control
· Missteps in evaluating internal control
· Linkage between AU-C 315 and AU-C 330
