Introduction to Risk Assessment

Proper risk assessment is essential to designing an appropriate risk response during engagements. This course provides a foundational understanding of risk assessment procedures, equipping participants with the knowledge needed to enhance audit efficiency and effectiveness. Attendees will explore the requirements of AU-C Section 315, which mandates that auditors gain an understanding of the entity and its environment. We will break down the audit risk model, ensuring a clear understanding of its individual components and how this formula drives decision-making throughout the engagement.

Through practical guidance, we will outline the steps of performing risk assessment, from executing risk assessment procedures to responding to identified risks. Additionally, we will emphasize the importance of walkthroughs on internal controls and their role in assessing risk.

Upon completion, learners will be able to:
1. Perform risk assessment procedures during an engagement
2. Recall parts of the audit risk model