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Applying Materiality and Audit Testing in Financial Statement Audits
$39.95$39.95
Applying Materiality and Audit Testing in Financial Statement Audits
Materiality plays a central role in every phase of the audit process, influencing how auditors assess risk, design procedures, evaluate evidence, and form audit conclusions. This course explores how auditors apply materiality throughout an audit engagement, beginning with the establishment of materiality thresholds and continuing through sampling decisions, substantive testing, and the evaluation of identified misstatements. Participants will examine how auditors use professional judgment to determine appropriate materiality benchmarks, adjust materiality based on engagement risk, and revise materiality assessments as new information emerges during the audit.
The course also examines the relationship between materiality and audit testing, including how materiality affects sampling approaches, substantive procedures, and the allocation of audit resources. In addition, participants will learn how auditors evaluate identified misstatements, distinguish between trivial and material issues, and communicate significant findings to management and those charged with governance. Through practical discussion of risk assessment, sampling strategies, and final materiality evaluations, this course provides a comprehensive understanding of how materiality influences audit decision-making from planning through the issuance of the audit opinion.
Learning Objectives:
Upon successful completion of this course, participants will be able to:
• Identify common benchmarks used to establish materiality thresholds during audit engagements.The course also examines the relationship between materiality and audit testing, including how materiality affects sampling approaches, substantive procedures, and the allocation of audit resources. In addition, participants will learn how auditors evaluate identified misstatements, distinguish between trivial and material issues, and communicate significant findings to management and those charged with governance. Through practical discussion of risk assessment, sampling strategies, and final materiality evaluations, this course provides a comprehensive understanding of how materiality influences audit decision-making from planning through the issuance of the audit opinion.
Learning Objectives:
Upon successful completion of this course, participants will be able to:
• Explain how engagement risk and industry-specific factors influence materiality assessments.
• Evaluate the relationship between materiality, sampling methods, and substantive audit testing procedures.
• Assess identified misstatements using both quantitative and qualitative materiality considerations.
• Explain how auditors communicate material findings and perform final materiality assessments before issuing the audit opinion.
Course Number:
CC39
NASBA Field of Study:
Auditing
Level:
Intermediate
Author/Instructor:
Colten Christensen
Publication Date:
May 2026
CPE Credits:
2
Prerequisites:
None
Advanced Preparation:
None
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