Risk Assessment Standards When Auditing Privately-Owned Companies ON DEMAND

Overview

Auditors identify and assess the risks of a material misstatement by understanding the entity and its environment. Privately-owned companies present unique challenges. We’ll examine issues such as: Do identifiable controls exist? Do owners/managers promote compliance with company policies? Do owners/managers document controls and communicate them to staff? Are these controls observable? Can they be tested for operating effectiveness? Do owners/managers monitor employee performance and evaluate the controls in place?

Highlights

Review of applicable auditing standards for risk assessment. Identification and discussion of high-risk audit areas. Discussion and analysis of control risk vs. inherent risk. Practical approach to auditing companies where controls are minimal or not adequately documented. Detailed discussion and examples of risk assessment procedures and alternative approaches.

Prerequisites

None.

Designed For

CPAs and auditors.

Objectives

Recognize high-risk areas applicable to private companies. Determine the best approach to deal with private company shortcomings in control activities. Identify the appropriate risk assessment procedures in the circumstances.

Preparation

None.

Notice

None.