HOT! Changing Your Audit Strategy for the Risk Assessment Standards

(Formerly "Changing Your Audit Strategy for the New Risk Assessment Standards")

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This course provides detailed practical guidance to helping auditors evaluate how well they implemented the changes required by the risk assessment SASs (Nos. 104-111).  In 2007 the AICPA issued a guide for peer reviewers to evaluate how firms have implemented SAS No. 112.  This course gives practical advice on making sure that your firm has the appropriate level of documentation to meet SAS No. 112 and provides examples of the most frequently issued comments written in a very practical but diplomatic fashion.  For auditors that use PPC practice aids, this course cross-references the requirements of the risk assessment standards and SAS No. 112 to those practice aids.

Designed For
Practitioners who audit non-public companies, including for profit entities, not-for-profit entities and governments. 

Objective

Participants will be able to:

• Assess whether they have made all the appropriate changes needed in conducting the audits of non-public companies

• Gain efficiencies in the second year under the standards

• Evaluate their documentation of the understanding the entity and its environment, including its internal control as well as the internal control findings under SAS No. 112 that are likely to result.

Changes to the engagement letter… Clarification of three categories of financial statement assertions...  How to create audit plans that are responsive to identified significant risks…  Understanding the entity and its environment…  Considering the client’s information technology and knowing when testing of the IT system is required…  Known, likely and trivial misstatements and how to address them with the client…  Defining the risk of material misstatement…  Evaluating passed adjustments, including the effects of prior years on the current period…  Coordinating SAS No. 99 and SAS No. 109 procedures…  Holding a risk assessment discussion with the audit team…   Depth of understanding required for the 5 elements of internal control…   Performing specific risk assessment procedures…  Identifying significant risks…  Substantive tests the auditor is required to perform…  Knowing when tests of controls are necessary…  COSO guidance for smaller companies…   SAS 112 requirements.

Presentation Method:  Lecture and group discussion

Level of Knowledge:  Intermediate

Prerequisites: Basic audit course or experience

Recommended CPE Credit:  8 hours

Field of Study: Auditing

Advance Preparation:  None

Availability Date:  5/1/2008

Author(s):   Margaret Thomas, CPA, MHA

Qualifies for 24 hour Yellow Book requirement.  Determination as to the qualification of certain courses for the Yellow Book 24 hour requirement should be made on an auditor specific basis depending on that auditor’s Yellow Book clients.  Note that the determination of course qualification is a matter of an auditor’s professional judgment in consultation with appropriate individuals in the audit firm. 

It is recommended that this course not be scheduled back to back with “Loscalzo’s Implementation Guide to the Risk Assessment Standards,” “Hands on Guide to Understanding and Testing Internal Control,” “Not-for-Profit Auditing Made Easy,” or the four hour module “Changing Your Firm’s Audit Approach – Understanding the Risk Assessment Standards.”