Covers the development of tests of controls and substantive tests for financial instruments.
Learning Objectives
Identify the significant risks and relevant assertions in assessing the risk of material misstatement of financial instruments included in the financial statements.;Identify the key concepts of professional skepticism to the audit of financial instruments.;Indicate whether it is appropriate to engage or rely on an employed valuation specialist during a financial statement audit that includes financial instruments.;Identify key elements in understanding the entity that will assist in evaluating the appropriateness of the entity's segregation of duties and the effectiveness of management's valuation approach.;Identify activities that can be performed by the internal audit function related to the valuation of and control procedures for financial instruments.;Identify considerations management should apply when relying on third-party pricing specialists and other valuation specialists.;Recall the audit requirements for assessing the appropriateness of impairment loses related to financial instruments and reasonableness of management's reported fair value measurement.
Major Topics
Definition of financial instruments;Planning considerations when auditing financial instruments;Testing of financial instruments in audit;Risk-based auditing and valuation of financial instruments
