Performing Small Audits Part 1 - Smaller Audits—Preparing for the end at the beginning (an overview)- A/V

CPE Credit: 2 hours

Learning Objectives

Upon completing this course, participants will be able to:

1. Identify the characteristics of smaller audit engagements and explain how professional judgment and scalability influence the design and performance of efficient, high-quality audits.

2. Apply the principles of quality management, client acceptance and continuance, engagement planning, and leadership involvement to strengthen audit quality and compliance with professional standards.

3. Evaluate risk of material misstatement at both the financial statement and financial statement classification levels and determine how assessed risks affect audit strategy and audit responses.

4. Distinguish between the various forms of audit evidence, including risk assessment procedures, systems walkthroughs, analytical procedures, tests of controls, and substantive procedures, and determine their appropriate application in smaller audit engagements.

5. Design cost-beneficial audit strategies by integrating risk assessment results with professional judgment to tailor audit procedures while maintaining sufficient appropriate audit evidence.

6. Determine appropriate audit documentation necessary to support planning, risk assessment, supervision, materiality, sampling, and conclusions in accordance with applicable auditing standards.

7. Apply the concepts of materiality, sampling, and financial statement assertions when planning and performing audit procedures designed to obtain sufficient appropriate audit evidence.

8. Recognize opportunities to improve audit efficiency through the effective use of technology, data extraction techniques, standardized practice aids, and appropriately modified audit programs for smaller engagements.