On-Demand

2 CPE

Auditing Bits in Bytes™ Session 2: Preliminary Planning Activities

On-Demand
2 CPE
  • View Bio

    Instructor

    Jennifer
    Louis

    View Bio

    Jennifer Louis, CPA

    Bio

    Jennifer F. Louis, CPA has over 25 years of experience in designing and instructing high-quality training programs in a wide variety of technical and “soft skills” topics needed for professional and organizational success. Jennifer focuses her energy on designing and delivering high-quality and engaging accounting and auditing training. Prior to founding Emergent Solutions Group, LLC, she was Director of Audit Product Development at Surgent Professional Education.

    In 2003 she founded Emergent Solutions Group, LLC, where she focuses her energy on designing and delivering high-quality, practical and engaging accounting and auditing training. She was most recently Director of Audit Product Development at Surgent Professional Education, and prior to that served as Executive Vice President/Director of Training Services at AuditWatch, Inc., a highly-respected training and audit process consulting firm. Before joining AuditWatch, Jennifer was the Financial/Operational Audit Manager at AARP. At the start of her professional career, Jennifer was an Audit Manager for Deloitte & Touche LLP, where she frequently served as a local and national instructor. Jennifer graduated summa cum laude from Marymount University with a BBA-Accounting. She currently resides in Charlotte, NC.

This 2-hour session focuses on the initial information that is gathered and important conclusions that are reached at the on-set of engagement planning and the performance of certain risk assessment procedures. This phase of the engagement sets the stage for how much effort will be invested in evaluating the design and implementation of internal controls (which is covered in Session 3 of this series).

Key professional judgments made at this stage provide the foundation and rationale for risk assessment conclusions that are ultimately used to design the nature, timing and extent of further audit procedures (which is covered in Session 4 of this series). One of the most important learning points that participants will take away from this session will be the recognition that these preliminary activities are not just “check off the box” tasks, but are critical to early judgment calls about risk of material misstatement, which directly influences the audit effectiveness and efficiency.

Develop a game plan for successful audits, learn more about MACPA’s Auditing Bits in Bytes™.

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

2 CPE
2
Auditing

Things to Know About This Course

Course Level

  • Basic

Professional Area of Focus

  • Accounting & Auditing

Prerequisites

  • 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.

Provider

AICPA

Purchase This Course

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  • MACPA Non-Member

    $ 90 90
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