This course is sponsored by the Business Learning Institute(BLI) who is listed on the NASBA Registry as sponsor number 108308.

Description:
Auditing Bits in Bytes™ is a series of eight individual sessions that guides professionals through the complete audit process from “A to Z” – starting with Pre-Engagement Planning Activities, and going all the way through Wrap-up and Quality Control.  
The auditing profession is undergoing the most significant changes in modern history.  Think about it.  The Auditing Standards Board issued 14 new Statements on Auditing Standards all effective within two years of each other, the GAO revised Government Auditing Standards (twice!) in 2007, the PCAOB has six additional Auditing Standards related to audits of SEC “issuers” that directly influenced standards established for “non-issuers”, independence rules promulgated by all relevant standard setters have been clarified and enhanced, and Statements on Quality Control Standards for firms performing attestation services have also been revamped and strengthened.  Whew!  That is a lot!  And to think that professionals complained about being confused before all these changes occurred!?!  All professionals, both those that are new to performing financial statement audits and those with previous experience, can benefit from focused training that walks participants through the complete audit process from “A to Z”, providing practical tips and best practices for ensuring an effective and efficient financial statement audit in compliance with relevant professional and regulatory standards

Objectives:
Session 2 of this eight-part series focuses on the initial information that is gathered and important conclusions that are reached at the on-set of engagement planning and the performance of certain risk assessment procedures.  This phase of the engagement sets the stage for how much effort will be invested in evaluating the design and implementation of internal controls (which is covered in Session 3 of this series).  Key professional judgments made at this stage provide the foundation and rationale for risk assessment conclusions that are ultimately used to design the nature, timing and extent of further audit procedures (which is covered in Session 4 of this series).   One of the most important learning points that participants will takeaway from this session will be the recognition that these preliminary activities are not just “check of the box” tasks, but are critical to early judgment calls about risk of material misstatement (which directly influences the audit effectiveness and efficiency).

Highlights:
• Gaining an Understanding of the Entity & Environment – What should be documented and how it relates to identifying areas of higher risk of material misstatement
• Materiality & Tolerable Misstatement – How these are not just rote calculations on a standard form, but important and key decisions that set the stage for conclusions throughout the entire audit
• Preliminary Analytic Procedures -  Why this analysis assists the auditor in identifying significant audit areas and “what could go wrong” in the client’s financial statements due to fraud or error 
• Fraud Risk Considerations – Common peer review deficiencies identified related to these important required procedures
• Identifying Significant Audit Areas – How to identify significant accounts, classes or transactions and disclosures, and what that means to further risk assessment procedures

Designed For:
Anyone who is new to auditing or desires a refresher in how to perform effective and efficient financial statement audits for non-issuers in accordance with professional and regulatory standards (Generally Accepted Auditing Standards and Yellow Book)

Prerequisite: None
Course Level: Basic
BLI Curriculum: Business Management
NASBA Field Of Study: Auditing
Instructor: Jennifer Louis, CPA