This program is an overview or SAS No. 122, AU 300 related to the auditor's responsibility to plan the audit so that it will be performed in an effective (and efficient) manner. In order to do so, one must know where the areas are that may result in a risk of material misstatement. We determine this by the evaluation of internal controls relate to financial statement presentation.

During this program, we will look at various areas and determine if there is sufficient risk to perform substantive test to reduce the risk to an acceptable level. We must remember not that each substantive procedure performed during must be able to be linked to the reduction of a perceived risk of a material misstatement. If we are unable to establish such a link, the substantive test has no informational content and cannot be justified.

The degree of substantive testing that an auditor performs should be based on risks of a material misstatement. Risks are often made up of a combination of things. Two of the most common risks are lack of a proper segregation of duties and week internal controls. However, if either or both of these risks are in areas where they could not result in a material misstatement of the financial statements, the auditor need not perform any substantive tests in the area.

Learning Objectives

• Define audit risks
  
• Measuring audit risks
  
• Analyzing a material weakness
  
• Comparing a material weakness to a significant weakness
  
• Evaluating the control environment
  
• Auditing
  
• Fraud

Included Materials

All ACPEN courses include handouts that are available to download. Handouts typically include a version of the slides used by the presenter, as well as a full course manual or other materials.

How To Access Your Course And The Accompanying Materials

You will receive an email directly from ACPEN with instructions for accessing your course and any accompanying materials.

How To Get Your CPE Credits

This course qualifies for two CPE credit hours! In order to obtain CPE credit for viewing ACPEN webcasts, you must view the course during the scheduled date and time. Throughout the program, you will be prompted to save three attendance codes per hour. At the conclusion of the program, your CPE Certificate will be issued assuming all attendance codes have been saved and submitted. Detailed instructions for this process are included in the course introduction and in written form as part of course materials.