Risk Assessment Under SAS No. 145: The Key to Audit Quality?

After attending this presentation you will be able to...

• Recognize key risk assessment concepts applying to SAS No. 145 in identifying and assessing risks of material misstatement
• Determine the impact to the risk assessment process and the work to be performed
• Identify risk assessment procedures related to the various components of the entity’s system of internal control
• Recall how to scale risk assessment requirements to be effective and efficient, particularly for less complex entities
• Recall when and how to evaluate design and determine the implementation of controls
• Recognize risk assessment requirements to appropriately identify risks arising from the use of information technology (IT) and related general IT controls
• Identify potential risk assessment and related audit documentation traps

The topics that will be covered in this class include:

• New concepts due to the issuance of SAS No. 145
• Revised requirement to separately assess inherent risk and control risk
• A new definition of significant risk
• New emphasis on IT controls and risk of material misstatement
• New guidance on maintaining professional skepticism
• Revised requirements to evaluate the design of certain controls
• Revised requirements regarding audit documentation
• New guidance on scalability