Materiality and risk in audit and review engagements

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This is the agenda for Table of Contents
Table of Contents
Module 1: Materiality

• The role of materiality
• The determination of materiality
• Materiality and review engagements
• Determination and documentation of materiality — An example
• Review questions
• Review solutions

Module 2: Audit risk and the risks of material misstatement

• Introduction
• Audit risk
• Risk and review engagements
• Documentation of the assessment of audit risk
• Assessing the risk of material misstatement
• Review questions
• Review solutions

Module 3: The auditor's responses to assessed risks

• At the financial statement level
• At the assertion level for classes of transactions, account balances, and disclosures
• Application to test of controls
• Application to substantive testing
• Interpretation of “low,” “moderate,” and “high”
• Evaluating the sufficiency of audit evidence obtained
• Detection risk and review engagements
• Review questions
• Review solutions

Quiz 1

Quiz 2

Illustration 1: Evaluating misstatements

Illustration 2: Evaluating misstatements – Adjustments

Appendix A: Canadian Hardware Sales Ltd. and select PPM forms

Appendix B: Select PPM forms