Best Practices for Identifying and Evaluating Audit Risk – Linking Risk to the Detailed Audit Plan

Learning Objectives

• To explain the importance of risk assessment to a high-quality audit.
• To describe the audit risk formula, including how the elements relate.
• To recognize and discuss the steps and best practices of an effective risk assessment process.
• To identify and link risk to a detailed audit plan.

Course Description

The need for companies’ financial statements to be audited by an independent external auditor has been a cornerstone of confidence in the world’s financial systems.

For an efficient and effective audit plan, it is important to:

• Properly identify the risk
• To assess the risk identified, and
• Respond to the risk

Risk assessment is the identification and evaluation of several aspects of an entity whereby risks are identified and evaluated for use in guiding the audit procedures that will be necessary to substantiate the amounts reported in the financial statements. 

This CPE/CPD webinar is a guide for auditors on how best to assess risks when planning audit work.

Major topics covered in this Auditing webinar are:

• Benefits of the Risk-based Focus
• Overview of the Risk Assessment Process
• Identifying Risk assessment activities
• ISA 315 New Concepts
• Overview of Audit Risk Model
• Critical elements of entity and environment that impact risk
• Fraud Triangle
• Documenting risk assessment conclusions and responses

Join this online CPE course as it will emphasize the key concepts and best practices that drive a thoughtful risk-based approach to form an opinion on financial statements.

Please click here to access Fraud & Forensic CPE Courses.

Overview

• Benefits of Risk-Based focus

  5 mins
• Risk Assessment activities

  12 mins
• Audit risk formula

  24 mins
• Caution to be taken while using of standardized audit programs

  44 mins
• Focusing on control risk

  64 mins
• Common audit approaches

  82 mins
• Linking risk assessment to detailed audit plan

  92 mins