The Risk Assessment Standards establish standards and provide guidance concerning the auditor’s assessment of the risks of material misstatement in a financial statement audit and the design and performance of audit procedures whose nature, timing, and extent are responsive to the assessed risks. Auditors continue to struggle with effective and efficient execution of the Risk Assessment Standards. Read more about effective risk assessment, "4 Steps to Better Risk Assessments
," at the AICPA Insights
blog. And, with audit season just around the corner, read our "25 Tips for an Efficient Engagement
Additionally, the AICPA has drafted a whitepaper
that attempts to simplify the practitioner’s understanding of the risk assessment standards and process by focusing on the end game and how that objective can be achieved in an effective, yet efficient, manner.
Recently, the AICPA Peer Review Team compiled the most common deficiencies found during engagement reviews, related to the Risk Assessment Standards. View a video discussing their findings
The AICPA has a number of other resources to help you understand and apply the requirements of the risk assessment process, including its release of an Audit Risk Assessment Tool, which is designed to walk an experienced auditor through the risk assessment procedures and document those decisions necessary to prepare an effective and efficient audit program. This tool is designed to be used in lieu of cumbersome checklists by providing a top down approach to the identification of high risk areas to allow for appropriate tailoring of audit programs which will result in audit efficiencies.
AICPA Audit Risk Assessment Tool
Auditors continue to struggle with effective and efficient execution of the Risk Assessment Standards. The AICPA Audit Risk Assessment Tool
is designed to walk an experienced auditor through the risk assessment procedures and document those decisions necessary to prepare an effective and efficient audit program. This tool is designed to be used in lieu of cumbersome checklists by providing a top down risk-based approach to the identification of high risk areas to allow for appropriate tailoring of audit programs which will result in audit efficiencies. The Audit Risk Assessment Tool is available
The AICPA has created a helpful tutorial
to assist practitioners in realizing the efficiencies that this product provides.
Chuck Landes, Vice President Professional Standards and Services discusses the new AICPA Audit Risk Assessment Tool and provides a preview of the tool's features and the expected efficiencies that can be realized.
Many of the AICPA Audit and Accounting publications have extensive discussion of risk assessment and the risk assessment process. The Audit Risk Alert series provides you with an overview of recent economic, industry, technical, regulatory, and professional developments that may affect the audits you perform. Updated annually, alerts also help identify the current year significant business risks that may result in the material misstatement of a client's financial statements. These publications, available in e-book format, online or in paperback, include:
In addition to the resources highlighted, more publications containing risk assessment guidance are also available:
Continuing Professional Education
Further, the AICPA has developed several continuing professional education opportunities to ensure the most efficient and effective use of the risk assessment standards on your engagements.
Applying the Risk Assessment Standards Using a Case Study Approach
Applying Risk Assessment Standards to Smaller Business Audits
- This self-study course focuses on those specific areas auditors are struggling with the most, using cases to provide practical application solutions.
- This course is primarily designed to benefit auditors with limited or no experience or knowledge of the AICPA’s audit risk assessment standards