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PCAOB AS 2301: The Auditor's Response to the Risks of Material Misstatements

PCAOB AS 2301: The Auditor's Response to the Risks of Material Misstatements

Join us for an insightful and informative CPE webinar on PCAOB Auditing Standard 2301 - Auditor's Response to the Risks of Material Misstatement. This webinar is designed to provide accounting and auditing professionals with a comprehensive understanding of the standard and its practical implications in the PCAOB auditing profession.


The PCAOB Auditing Standard 2301 establishes guidelines and procedures that auditors must follow when responding to the risks of material misstatement in an organization's financial statements. It emphasizes the importance of professional skepticism, appropriate planning, and documentation throughout the auditing process. This webinar will delve into the key elements of PCAOB AS 2301 and provide practical insights on its application.


Key Items Covered:

  • Overview of PCAOB Auditing Standard 2301
    • Understanding material misstatement
    • Importance of auditors' responses to mitigate risks
  • Identification and Assessment of Risks
    • Techniques for identifying risks of material misstatement
    • Assessing the likelihood and magnitude of potential misstatements
    • Determining significant risks that require further attention
  • Auditor's Responses
    • Developing appropriate responses to address identified risks
    • Modifying the nature, timing, and extent of audit procedures
    • Obtaining additional evidence and performing additional substantive procedures
  • Professional Skepticism
    • The role of professional skepticism in auditing
    • Questioning and critically assessing evidence, assumptions, and representations
    • Objectively evaluating risks and potential misstatements
  • Documentation Requirements
    • Importance of documentation in supporting conclusions and judgments
    • Maintaining sufficient and appropriate documentation
    • Best practices for effective documentation in accordance with PCAOB AS 2301


This CPE event is designed for auditors, accounting professionals, and anyone who is involved in the planning and execution of PCAOB regulated financial audits. All of our instructors have Big 4 audit experience in leading audit teams to responding to the risks of material misstatements.


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


Don't miss this opportunity to enhance your understanding of how to response to the risks of a material misstatement. Register now to gain valuable insights and techniques that will elevate your effectiveness in conducting PCAOB regulated audits.

  • Details on Event Presentation

    Offered every six weeks on Wednesdays at 10:00 a.m. to 12:00 p.m. 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

    • Understand the requirements of auditing standards related to the auditor's responses to the risks of material misstatement, including the responsibilities of the auditor and management in this process.
    • Learn how to identify and assess the risks of material misstatement in financial statements, including both inherent and control risks.
    • Understand the various responses available to the auditor when risks of material misstatement are identified, including substantive procedures and tests of controls.
    • Learn how to design and implement effective audit procedures to respond to the identified risks of material misstatement.
    • Understand the importance of professional skepticism in responding to the risks of material misstatement and the techniques that auditors can use to enhance their skepticism.
    • Understand the requirements for documentation of the auditor's responses to the risks of material misstatement, including the nature and extent of the documentation needed.
  • Learning Objectives

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

    • Understanding how to respond to risks,
    • Designing holistic audit procedures to address identified risks,
    • Being more professionally skeptic concerning risks,
    • Seeing where the PCOAB has called out audit deficiencies under the auditing standard.



  • Key Issues on the Agenda

    Introductions and Administrative Items

    • Introductions

    • What is the PCAOB Auditing Standards context?

    • What are the Five Major Audit Standard Sections?

    • AS 2301 is the second most sighted PCAOB AS in the Big Eleven Inspection Reports

    Section 1 - Auditing Standard 2301 - Definitions and Concepts

    • Material Misstatement

    • Audit Risk Assessment

    • Financial Statement Risk Assessment

    • Inherent - Control - Dectection and Audit Risks

    • Substantive Testing Procedures

    • Audit Evidence

    Section 2 - PCAOB Auditing Standard

    • Introduction and Objective
    • Responding to the Risks of Material Misstatement

    • Overall Responses

    • Responses to Significant Risks

    • Responses to Fraud Risks

    • Testing Controls

    • Assessing Control Risks

    • Substantive Procedures

    • Dual-purpose Tests

    Section 3 - Going Forward and Summary

    • PCAOB Inspections Observations

    • Which AS Paragraphs to Focus Upon

  • Summary of the Subject Matter

    Enhance your auditing skills with our CPE program on PCAOB Auditing Standard 2301. Gain insights into auditors' responses to material misstatement risks, professional skepticism, and documentation requirements. Join us for a comprehensive understanding of this important standard.
  • Authoritative Sources

    Here are some resources that stand as beacons of knowledge, guiding us further along this path to being a better auditor. These aren’t just links on a page; they’re invitations to dive deeper, to question, and to grow. Each one offers a unique perspective or piece of the puzzle that is PCAOB AS 2301, helping us to not only navigate but also to master the challenges it presents.

    Each of these resources, carefully selected, offers a pathway to not just understanding but truly embracing the principles and practices outlined in PCAOB AS 2301. They invite us to engage not just with our minds but with our hearts—to remember that at the core of our work lies a commitment to truth, to diligence, and to the public good. As you explore these resources, may you find not just information, but inspiration—fuel to drive you forward in your journey as a guardian of financial integrity.

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