Impact of SAS No. 145 on Yellow Book Engagements

Learning Objectives

• To identify clarifications and enhancements made to the risk-based audit process post - SAS No. 145.
• To recognize core concepts fundamental to high-quality risk-based financial statement audits performed in accordance with Yellow Book (or Generally Accepted Government Auditing Standards).

Course Description

SAS No. 145: Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement stands as a significant milestone in the realm of audit practices. Its primary aim is to elevate the standard of risk-based audits, thereby ensuring the precision and integrity of financial statement audits. Notably, this standard extends its reach to encompass audits conducted in accordance with Government Auditing Standards, colloquially known as the Yellow Book.

This CPE Auditing course revolves around a comprehensive exploration of the pivotal advancements and elucidations introduced by SAS No. 145, all aimed at enhancing the overall quality of audits. This course delves into the intricacies of these clarifications, serving as a beacon guiding auditors toward more proficient and thorough audit processes.

As auditors navigate the complex landscape of modern financial assessments, this CPE course serves as a beacon, illuminating the path to enhanced audit practices, fortified judgments, and ultimately, fortified trust in financial reporting.

The following are the major topics covered in this Auditing CPE webinar: 

• New definitions and requirements related to identifying and evaluating risks of material misstatement per SAS No. 145.
• Improved application of risk-based audit concepts for a higher-quality audit.

Overview

• Government Auditing standards

  5 mins
• Yellow book : Reporting fraud, noncompliance, Waste and Abuse

  14 mins
• SAS no. 145 Key Enhancement

  26 mins
• Application of performance materiality to extent of testing

  36 mins
• Relevant assertion - Level risk

  52 mins
• The design and implementation evaluation process

  69 mins
• Extending procedure due to increased risk

  92 mins