Course Name: Identifying and Assessing Risks of Material Misstatement (CAS 315)
CPD Hours: 3.5
Type: Online/Video
Price: $210 $168
Description:
Effective risk assessment is fundamental to the planning and performance of a high-quality financial statement audit. Identifying and Assessing Risks of Material Misstatement (CAS 315) provides Canadian accounting professionals with a practical understanding of the requirements and application of CAS 315 when identifying and assessing risks that could result in material misstatements in financial statements.
The course examines how auditors develop an understanding of the entity, its environment, the applicable financial reporting framework, and the entity’s system of internal control. Participants will explore how business activities, industry and regulatory conditions, accounting policies, significant transactions, estimates, judgments, and other factors can influence the risk of material misstatement.
Particular attention is given to understanding internal controls and the increasingly important role of information technology in the risk assessment process. The course discusses the entity’s IT environment, risks arising from the use of IT, general IT controls, automated controls, information systems, communication processes, and monitoring activities.
Participants will learn how to identify risks of material misstatement at both the financial statement and assertion levels and how to determine relevant assertions for significant classes of transactions, account balances, and disclosures. The course also examines the spectrum of inherent risk and key inherent risk factors, including complexity, subjectivity, change, uncertainty, and susceptibility to management bias or other fraud risk factors.
The course concludes by examining significant risks, the assessment of control risk, the ongoing nature of risk assessment, and CAS 315 documentation requirements. Practical examples and audit scenarios are incorporated throughout to demonstrate how CAS 315 concepts can be applied to real-world Canadian audit engagements.
Upon completion, participants should have a stronger understanding of how a well-designed risk assessment process supports effective audit planning, helps auditors focus their efforts on areas of greater risk, and provides the foundation for designing appropriate further audit procedures.
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