Risk based auditing under ISAs – a practical guide

The requirements of clarified ISAs have been in force for a few years but firms continue to be criticised for non-compliance. Additionally firms feel burdened with compliance requirements and audit documentation such that key audit issues may be overlooked. In this seminar we consider how to apply the risk based approach envisaged in the ISAs, particularly in ISA 315, to enable cost effective compliance.
We will ask: What is audit risk and how do we identify audit risk? The course will cover: Risk assessment in practice: Understanding the entity, Assessing the risk of fraud and non-compliance with laws and regulations, Risk at the financial statement level, Risk at the assertion level, Significant risk;
Risk response: Designing audit programmes, The types and levels of tests required, Allocating staff, Carrying out the testing and recording audit work; Reporting the results: To management and those charged with governance, In the audit report, To third parties; Problem areas: Audit of accounting estimates, Related parties, Going concern, Opening balances and comparative figures