Event Description

Financial statement auditors are engaged to provide reasonable assurance that financial statements are not materially misstated, whether due to fraud or error. Professional standards require auditors to obtain sufficient and appropriate evidence to support that opinion. It is critical for effective and efficient auditors to have a clear understanding of all the important elements and concepts related to properly identifying, evaluating, and deciding how to respond to risk in a financial statement audit.

Objectives

• Recall the basis for an audit
• Explain the auditor’s professional responsibilities
• Identify important audit concepts, such as materiality
• Explain the foundational principles of the audit risk formula
• Recognize considerations when Identifying and assessing risk of material misstatement