2 Total CPE Credits

Auditing Bits in Bytes™ Session 2: Preliminary Planning Activities

Total CPE: 2

Auditing Bits in Bytes™ Session 2: Preliminary Planning Activities

  • Instructor

    Jennifer Louis

Learning Objectives

  • Recognize how preliminary planning and risk assessment activities are not just “check off the box” tasks, but meaningful judgments that directly influence audit effectiveness
  • Describe the initial information that should be gathered about the entity and its’ environment to have a proper basis for important decisions made in early planning and risk assessment
  • Recognize the importance of key materiality and performance materiality judgments, and resulting impact on risk assessment and the detailed audit plan
  • Describe how proper preliminary analytic review sets the stage for how much audit effort will be spent on the engagement
  • Identify ways to avoid common deficiencies in identifying and responding to fraud risk on the audit
  • Describe the factors that should be considered when designating significant audit areas

Major Topics

  • Gaining an Understanding of the Entity & Environment – What should be documented and how it relates to identifying areas of higher risk of material misstatement
  • Materiality & Performance Materiality – How these are not just rote calculations on a standard form, but important and key decisions that set the stage for conclusions throughout the entire audit
  • Preliminary Analytic Procedures – Why this analysis assists the auditor in identifying significant audit areas and “what could go wrong” in the client’s financial statements due to fraud or error
  • Fraud Risk Considerations – Common peer review deficiencies identified related to these important required procedures
  • Identifying Significant Audit Areas – How to identify significant accounts, classes or transactions and disclosures, and what that means to further risk assessment procedures
  • Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement

CPE Credits Available

Total CPE

Things to Know About This Course

Course Level

  • Basic

Professional Area of Focus

  • Accounting & Auditing


  • None

Intended Audience

  • Anyone who is new to auditing or desires a refresher in how to perform effective and efficient financial statement audits for non-issuers in accordance with professional and regulatory standards.


Business Learning Institute

Purchase This Course

  • MACPA Member

    $ 75 75
  • MACPA Non-Member

    $ 90 90
    Your Price

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