Audit Staff Training for New Senior Accountants—Part 6, Incorporating Assessed Levels of Risk into Materiality and Sampling Decision-Making

CPE Credit: 2 hours

Paraphrasing AU-C 320 of the Clarified Auditing Standards, materiality judgments about financial statements are unique to each environment in which judgments are made. Risk always affects materiality. Materially misstated financial statements contain errors or irregularities that a reasonable person, considering the quantitative and qualitative facts in the circumstances, would consider important enough to cause an unfair presentation.

LEARNING OBJECTIVES
• Learn how to determine and use risk and materiality to create efficiencies on audits.
• Be able to perform good error analysis.
• Learn how to save time on audits by performing non-sampling applications.
• Be able to apply sampling and non-sampling procedures.