Detecting Misstatements: Integrating SAS 99 and the Risk Assessment Standards

Taking an integrated audit approach to understanding material misstatements arising from both fraud and unintentional errors is essential to improving the overall quality and effectiveness of an audit. This course combines SAS 99 (fraud) with SASs 104-111 (the Risk Assessment Standards) which require audit team brainstorming sessions to be conducted and documented. Too often, auditors fail to read the warning signs that require a unique response to the risk of material misstatement arising from fraud or unintentional errors. In either event, the consequence is the same: another audit failure! Learn how to integrate your audit approach for assessing the risks of material misstatements arising from fraud with those arising from unintentional errors.

OBJECTIVES

• Conduct more effective brainstorming sessions
• Utilize a top-down approach, starting with those charged with governance
• Recognize warning signs
• Develop an overall approach for assessing and responding to risks
• Design procedures for responding to specific assessed risks
• Improve documentation quality
• Understand the requirements of the related standards
• Apply the standards to specific situations

PREREQUISITE: Basic understanding of accounting and auditing principles