With the increasing cases of litigations and even scandals in recent years, risk-based audit approach becomes the main stream in public practice sector. The purpose of risk-based audit approach is to reduce the level of audit risk that auditors may encounter. Audit risk assessment become an essential element in audit engagement and has a major impact on determining the types of audit procedures adopted for various audit areas.
Description
The workshop will focus on HKSA 300 The Auditor's Responses to Assessed Risks and make reference to HKSA 315(Revised) Identifying and Assessing the Risks of Material Misstatement through Understanding the entity and its environment, HKSA 250 Consideration of Laws and Regulations in an Audit of Financial Statements and HKSA 570 (Revised) Going Concern. Case study relating to valuation of inventory and going concern applicability will also be discussed to reinforce attendants' understanding of risk factors involved and how auditors respond.
Key topics covered:
- Introduction of the audit risk model and types of risks that auditors would focus in assessment process
- Risk assessment process performed by auditors in a nutshell
- Common methodologies applied for risk assessment
- Reasons for the need that auditors have to understand client's business activities and general economic condition
- Auditor's consideration of laws and regulations that clients have to comply with
- Consideration of appropriateness in adopting going concern assumption by client in preparing financial statements
- Impact of suspected and/or identified fraudulent activities on risk assessment
- How different levels of assessed risk affect the audit approach adopted and design of audit procedures
Trainer profile:
Clarence Choi
Clarence Choi is a professional accountant who has over 15 years experience in external and internal audit. He has over 12 years teaching experience on professional accounting related subjects. He is an adjunct lecturer of HKU SPACE and routinely conducts various lectures in the institute, including bachelor degree program. He has lectured the subject Advanced Audit and Assurance in revision program course of CPA Australia launched through HKU SPACE. He is also a technical consultant of a long established local CPA firm.
Learning objectives
- Gain a basic understanding of major areas/factors that will lead to increased audit risk
- Understand how the auditors react to different levels of assessed risks.
- Determine the appropriate quantity and quality of audit resources applied to areas of different assessed risk level
- Identify the potential risk areas that is controllable and to which independent auditors are of most concern
- Implement appropriate control procedures in order to minimise the chance of misstatements in accounting records
Audience
This workshop is suitable for public practitioners, internal auditors, accountants and individuals seeking to enhance their knowledge in engaging with independent auditors.
In-person 3 Hours
60317327