Materiality and risk in audit and review engagements

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
	Glossary