SAS No. 122, AU 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
Online
3.00 Credits
Member Price $99.00
Non-Member Price $129.00
Overview
If you do not understand the entity that you are auditing, you won’t know what type of transactions they should be entering into. As a result, you won’t recognize those transactions they should not be there. In other words, you will be performing the audit without having any idea of what you should be looking at. This statement requires that the auditor document their understanding of the entity and its environment that it operates in as well as assessing the risks of material misstatement.
Prior to this statement, auditors often assessed risk at maximum and did not evaluate internal controls. A big change made by this statement is that, while it allowed the auditor to continue to assess risk at maximum, they now must first evaluate internal controls in order to have a basis for making such an assumption. As a result, auditors are now required to document their evaluation of internal controls on every financial statement audit.
This presentation is an overview of the many procedures auditors are now required to perform and document on every audit related to their understanding of the entity and its environment and the basis for assessing the risk of material misstatement.
Objectives
- Determining Risk
- Identify and assess the risk of material misstatement either due to error or fraud
- Distinguishing between an error of a fraud
- Understanding intent
- Evaluating the internal control process – When it begins and when it stops
- Developing risk assessment procedures
- Understanding the dangerous of complex transactions
Highlights
- How the effect of a misstatement due to error effects the scope of our audit vs a misstatement due to fraud
- Inquires of management …….. and others
- The audit planning process; when we start and when we stop
- The importance of brainstorming and what two things should a talk about
- Revisions of our risk assessment
- Determining materiality
Designed For
External and Internal Auditors; Fraud Examiners
Prerequisites
None
Preparation
None
Notice
Your webinar can be accessed via https://ctcpas.acpen.com/Account/login. If you do not have an ACPEN account, please sign up for an account using the email address you have on file with CTCPA.
Leader(s):
Leader Bios
Dennis Dycus
Dennis F. Dycus, CPA, CFE, CGFM, Trainer, Consultant, Public Speaker has recently retired after 39 years with the Office of the Comptroller of the Treasury of the State of Tennessee as the Director of the Division of Municipal Audit where I was responsible for the audits of all local governments in Tennessee, with the exception of counties and their affiliated, units as well as conducting investigations related to fraud, waste, and abuse in local governments. For the last several years he has developed and/or conducted training programs in all fifty states, Puerto Rico, Guam, Canada and Europe, for organizations such as the Association of Certified Fraud Examiners; the American Institute of Certified Public Accountants; numerous state CPA societies; the Government Finance Officers Association; the Association of Government Accountants; the National Association of State Auditors, Comptrollers and Treasurers; Westcott Communications, Inc.; Western CPE; Accounting Continuing Professional Education Network; the Organization for Security and Co-Operation in Europe; IBM; HCA; NYC Presbyterian Hospital; Saturn, Inc.; Chrysler; Securities and Exchange Commission; the U.S. Department of Labor; U.S. Environmental Protection Agency; the Government Accountability Office; U.S. Office of Management and Budget; the Internal Revenue Service; US Bankruptcy Trustees; Bisk Education, Inc.; Nichols Education, Inc.; Symbion, Inc.; numerous state audit organizations; local ACFE, AGA and state CPA chapters; and individual professional firms. He frequently speaks at colleges and universities as well as various professional conferences, both on a local and national level. Dennis is a member of the AICPA; TSCPA; GFOA; TGFOA; ACFE (charter member), Middle Tennessee Chapter ACFE –Past President, current President Emeritus; AGA; Middle Tennessee Chapter AGA – Past President and he has authored articles related to the detection and prevention of fraud for several national publications. He attended Western Kentucky University, with a BS in Accounting, Class of 1969 and in 1986 he graduated from the Tennessee Government Executive Institute (TGEI).
Non-Member Price $129.00
Member Price $99.00
Registration for this event on this date is closed. See above for alternate dates.