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PCAOB AS 2110: Risks of Material Misstatement

PCAOB AS 2110: Risks of Material Misstatement

Mastering PCAOB Auditing Standard 2110


Unlock the Essentials of Risk Assessment in Auditing. In the dynamic world of auditing ,understanding how to effectively identify and assess the risks of material misstatement is not just a skill—it's an absolute necessity. That's why we're thrilled to announce an exclusive two-hour CPE training event dedicated to overview the PCAOB Auditing Standard 2110: Identifying and Assessing Risks of Material Misstatement.


Why Attend?


In this meticulously crafted session, you'll journey through the nuances of AS 2110, guided by industry expert who live and breathe auditing standards. Whether you're looking to refine your existing knowledge or are diving into this area for the first time, this event promises to enrich your understanding and equip you with tangible skills that you can apply directly to your audit engagements. All of our instructors have Big 4 audit experience into this event and will provide council on risk assessment.


Learning Highlights:


  • Grasp the Core Principles: Start with a solid foundation by understanding the objective, scope, and importance of AS 2110 in the auditing landscape.
  • Identify Risks with Precision: Learn the art and science behind identifying risks of material misstatement at both the financial statement and assertion levels.
  • Assess Fraud Risks Effectively: Delve into the critical aspect of fraud risk assessment, uncovering how to evaluate fraud risk factors and implement controls to mitigate these risks.
  • Evaluate Control Design and Implementation: Gain insights into evaluating the design and implementation of controls aimed at addressing identified risks, ensuring they are both effective and operational.
  • Revise and Respond: Explore the dynamic nature of auditing by learning how to revise risk assessments and adapt audit procedures in response to new evidence or insights.
  • Hands-On Learning Experience: Engage with practical examples and case studies that bring the principles of AS 2110 to life, allowing you to apply what you've learned in real-world scenarios.


Who Should Attend?


This training is essential for auditors, accountants, and financial professionals seeking to deepen their expertise in financial statement risk assessment within the framework of PCAOB standards. It is also highly beneficial for those aiming to stay ahead of the curve in the ever-evolving field of auditing.


Attendees in this PCAOB auditing standard CPE event will earn 2 CPE Event Hours (Yellow Book -YB). A certificate of completion will be provided.


Register Now


Don't miss this opportunity to enhance your auditing skills and earn CPE credits in the process. Reserve your spot today and take a significant step toward mastering the intricacies of PCAOB Auditing Standard 2110.


Your journey towards absorting the complexities of risk assessment in PCAOB auditing begins here.


We look forward to welcoming you to an event that promises not just to inform but to transform your approach to identifying and assessing risks of material misstatement. Let's embark on this path of learning and growth together. See you in this important PCAOB AS CPE training event!

  • Details on Event Presentation

    Offered every six weeks on Fridays at 10:00 a.m. to 12:00 noon Central Time in two CPE-Credit event.

    We can schedule private events on your timetable for two or more attendees.

    NASBA Program Disclosure

    Program Level of Understanding: Basic

    Prerequisites: None

    Advance Preparation: None

    Delivery Format: Group Internet Based

    NASBA Field(s) of Study: Auditing

    CPE Credits: 2, based on 50 minutes of instruction per hour

  • CPE Event Highlights

    • Deep Dive into AS 2110: Begin your journey with a thorough understanding of the PCAOB Auditing Standard 2110, its objectives, scope, and its pivotal role in enhancing audit quality.
    • Risk Identification Techniques: Learn advanced strategies for pinpointing risks of material misstatement. Our expert will guide you through methodologies that help reveal risks at both the financial statement and assertion levels.
    • Fraud Risk Assessment: Tackle the complexities of fraud risk with confidence. This segment offers a robust framework for evaluating fraud risk factors and designing effective controls to mitigate these risks.
    • Evaluating Control Measures: Gain proficiency in assessing the adequacy and effectiveness of a company's control measures. This includes a close look at how controls are designed to address identified risks and their operational effectiveness.
    • Dynamic Risk Assessment: Discover the art of dynamic risk assessment. Understand how ongoing evaluations and adjustments to risk assessments are crucial as new information becomes available throughout the audit process.
    • Expert-Led Discussions: Benefit from the wealth of experience our speaker bring to the table. Engage in insightful discussions and Q&A sessions that enrich your understanding and resolve your queries.
  • Learning Objectives

    This event will impove the PCAOB auditor's efficiency and effectiveness by:

    • Understanding PCAOB AS 2110: Gain a comprehensive overview of the PCAOB Auditing Standard 2110, including its scope, purpose, and significance in the auditing process. This foundational knowledge will set the stage for a deeper exploration of risk assessment methodologies.
    • Identify Risks of Material Misstatement: Learn how to identify risks of material misstatement at both the financial statement and assertion levels. Participants will explore techniques and considerations for uncovering potential risks that could impact the accuracy and reliability of financial statements.
    • Assess Fraud Risks: Dive into the specific requirements of AS 2110 related to fraud risk, including the evaluation of fraud risk factors and the design and implementation of controls to address these risks. Understanding the nuances of fraud risk is crucial for auditors to protect against material misstatements due to fraud.
    • Evaluate the Design and Implementation of Controls: Develop skills to evaluate the design of a company's controls intended to mitigate identified risks and determine whether these controls have been properly implemented. This objective emphasizes the importance of not just identifying risks but also assessing the mechanisms in place to manage those risks.
    • Revise Risk Assessments: Understand the dynamic nature of risk assessments and learn how to adjust and revise risk assessments as new audit evidence emerges throughout the course of an audit. This segment will cover the necessity of being adaptable and responsive to new information that may affect the auditor's initial risk assessment.
  • Key Issues on the Agenda

    Introductions and Administrative Items

    • Introductions

    • Learning Objectives

    • What is the "PCAOB Auditing Standards" context?

    • What are the Five Major Audit Standard Sections

    Section 1 - Auditing Standard 1220 - Definitions and Concepts

    • Materiality and Misstatements

    • Risk Identification

    • Inherent Risk in Financial Statements

    • Designing Responses

    • Consideration of Fraud

    • Audit Risk Levels

    • Noncompliance with Laws and Regulations

    Section 2 - PCAOB Identifying and Assessing Risks Standard

    • Objective of the Standard
    • Performing Risk Assessment Procedures

    • Obtaining an Understanding of the Company

    • Industry, Regulatory, and Other External Factors

    • Nature of the Company

    • Selection and Application of Accounting Principles

    • Company Objectives, Strategies, and Related Risks

    • Company Performance Measures

    • Obtaining an Understanding of ICFR

    • Performing Walkthroughts

    • Performing Analytical Procedures

    • Factors Relevant to Identifying Fraud Risk

    Section 2 - Going Forward and Summary

    • PCAOB Inspections Observations

    • Guidance on Engagement Quality Reviews

  • Summary of the Subject Matter

    In the realm of auditing, understanding and applying standards effectively is not just about compliance; it's about commitment to excellence and integrity. The PCAOB Auditing Standard 2110, focusing on Identifying and Assessing Risks of Material Misstatement, stands as a cornerstone in this pursuit, guiding auditors through the critical process of risk assessment in financial statement audits.

    This CPE event is designed to unfold the layers of AS 2110, offering participants a deep dive into its principles, methodologies, and real-world applications. Through a blend of expert-led presentations, interactive discussions, and practical case studies, attendees will emerge with a robust understanding of how to effectively identify and assess risks of material misstatement, enhancing the quality and reliability of their audit engagements.

  • Authoritative Sources

    In your journey to deepen your understanding of PCAOB Auditing Standard 2110 and its critical role in identifying and assessing risks of material misstatement, it's essential to have access to authoritative sources. These resources not only provide a foundation for learning but also offer insights that are invaluable for auditors committed to excellence and integrity in their practice. Below is a curated list of authoritative sources where you can explore more about AS 2110 and related standards:

    Public Company Accounting Oversight Board (PCAOB) - AS 2110 Overview

    • This page provides a comprehensive overview of AS 2110, laying out the approach to identifying and assessing risks of material misstatement.

    PCAOB Auditing Standards

    • Here, you'll find a collection of auditing standards, including AS 2110. It's a valuable resource for understanding the broader context of auditing standards and how AS 2110 fits into the overall framework.

    PwC Viewpoint on AS 2110

    • PwC offers an insightful perspective on AS 2110, discussing the process of identifying and assessing risks of material misstatement. It's an excellent resource for auditors looking for practical insights and interpretations of the standard.
    Center for Audit Quality (CAQ) - Focus on the Auditor's Risk Assessment
    • The CAQ provides a focused discussion on the auditor's risk assessment process, highlighting the importance of standards like AS 2110 in ensuring effective audit planning and execution.

    PCAOB Standard Setting and Research Projects - Noncompliance with Laws and Regulations

    • This page discusses ongoing projects and enhancements related to auditing standards, including those that impact the evaluation of risks of material misstatement.

    Exploring these resources will enrich your understanding and application of AS 2110, equipping you with the knowledge to navigate the complexities of auditing with confidence and integrity.

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