Performing an Effective Audit Risk Assessment in the COVID-19 Environment
Tuesday, July 19, 2022
Recent auditing standards and peer review feedback have emphasized the importance of performing an effective risk assessment when identifying and evaluating the risk of material misstatement in a financial statement audit. These risk assessment procedures include both evaluating the design and implementation of internal controls, as well as determining how much reliance an auditor will place on those controls. Further, the risk assessment process provides the rationale for effectively and efficiently designing the nature, timing, and extent of further audit procedures, be they testing the operating effectiveness of internal controls or the performance of substantive audit procedures. While this requirement of an effective audit hasn't changed, the level of risk brought about due to emerging accounting and disclosure issues brought on by the pandemic coupled with the new ways we will be required to obtain the information to assess risk and internal control stressors on our clients, certainly has.
This course will focus on how to utilize a risk-based approach in audit engagements to enhance audit quality, with an emphasis on how to comply with the professional requirements in a virtual environment. As auditors continue to struggle with effective and efficient execution of the Risk Assessment Standards, it's likely these struggles will increase in the new virtual reality. This course will give you a jump start on determining how you can comply with professional standards as you and your clients adapt to new working conditions.
- Recall key concepts in the risk assessment standards, including various requirements
- Recognize how to implement the standards in practice
- Identify approaches to comply with professional standards while auditing in a virtual environment
- Audit process and planning
- Setting materiality
- Assessing the risk of material misstatement and the design and implementation of internal controls
- Assessing the impact on the assessment of internal controls in a changing work environment
- Designing procedures to test the effectiveness of controls
- Designing procedures to perform substantive procedures
- Challenges in performing audit procedures in a virtual environment
- Performing and evaluating interim and year-end tests of control and substantive procedures
- Final audit procedures and wrap up