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SAS No. 122, AU 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement WEBCAST


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3.0 Credits

Member Price $99.00

Non-Member Price $129.00


If you do not understand the entity that you are auditing, you won’t know what type of transactions they should be entering into. As a result, you won’t recognize those transactions they should not be there. In other words, you will be performing the audit without having any idea of what you should be looking at. This statement requires that the auditor document their understanding of the entity and its environment that it operates in as well as assessing the risks of material misstatement. Prior to this statement, auditors often assessed risk at maximum and did not evaluate internal controls. A big change made by this statement is that, while it allowed the auditor to continue to assess risk at maximum, they now must first evaluate internal controls in order to have a basis for making such an assumption. As a result, auditors are now required to document their evaluation of internal controls on every financial statement audit. This course is an overview of the many procedures auditors are now required to perform and document on every audit related to their understanding of the entity and its environment and the basis for assessing the risk of material misstatement.


How the effect of a misstatement due to error affects the scope of our audit vs a misstatement due to fraud. Inquiries of management and others. The audit planning process: when we start and when we stop. The importance of brainstorming and what two things should a talk about. Revisions of our risk assessment. Determining materiality.



Designed For

External and internal auditors. Fraud examiners.


Determining risk. Identify and assess the risk of material misstatement either due to error or fraud. Distinguishing between an error of a fraud. Understanding intent. Evaluating the internal control process - when it begins and when it stops. Developing risk assessment procedures. Understanding the dangerous of complex transactions.






Leader Bios

Dennis Dycus, BPN Inc

Mr. Dennis F. Dycus, CFE, CPA, CGFM, presently serves as the Director of the Division of Municipal Audit for the Office of the Comptroller of the Treasury, State of Tennessee. A graduate of Western Kentucky University, Mr. Dycus is a frequent guest speaker/lecturer for various college business/accounting classes, professional associations, local, state and national conferences and not-for-profit organizations. In 1996, the Eta Omicron Chapter of Beta Alpha Psi presented him with the Distinguished Alumnus Award in recognition of his support of the WKU Accounting Department. A 1986 graduate of the Tennessee Government Executive Institute, Mr. Dycus is an active member of the American Institute of Certified Public Accountants where he previously served on the Members in Government Committee, the Ad Hoc CPE Curriculum Task Force on Government and the National CPE Curriculum Subcommittee. He is also a member of the Tennessee Society of Certified Public Accountants, the Association of Government Accountants, where he previously served as chapter president; the Government Finance Officers Association, and the Association of Certified Fraud Examiners, where he also served as chapter president and is a former member of both the Association’s Board of Regent and ACFE Foundation as well as a member of their instructor faculty on a national basis. In June, 2005, the Middle Tennessee Chapter honored him with the designation of president emeritus in recognition of his longstanding contributions to the chapter. For the last several years, Mr. Dycus has developed and/or conducted training programs in all fifty states, Puerto Rico, Guam, Canada and Europe. He is a frequent speaker at various professional conferences, both on a local and national level. In 1989 and again in 1997, he was the recipient of the AGA’s, National Education and Training Award and has been presented with several Outstanding Discussion Leader Awards by both the Tennessee and Florida Societies of Certified Public Accountants. In 1998 he was honored with the Association of Certified Fraud Examiner’s, Distinguished Achievement Award for his meritorious service in the detection and deterrence of fraud and in 2001 was one of only three individuals to receive the designation as a Fellow of the Association of Certified Fraud Examiners in recognition for his contribution to expanding the Association’s body of knowledge toward the detection of fraud. In 2003 he was the recipient of the Tennessee Society of CPA’s first ever, Outstanding CPA in Government Award and in 2004 received the Association of Certified Fraud Examiners’ Outstanding CFE in Government Award. In 2009 he was recognized as a Friend of the Association by the Tennessee Association of Utility Districts for his contribution to the utility industry in Tennessee. This was only the second such recognition the association had made in its 52 year history. In addition, he has authored articles on auditing for fraud for national publications.

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Non-Member Price $129.00

Member Price $99.00