Online Tool Simplifies Risk Assessment for Financial Statement Audits

AICPA’s Web-Based Product Offers Step-by-Step Guidance

December 21, 2012

NEW YORK (Dec. 21, 2012) – Quality audits depend on a CPA’s ability to accurately assess the potential risk of material misstatements in a financial statement audit due to fraud or error. To simplify that goal, the American Institute of CPAs has developed the online Audit Risk Assessment Tool, which zeroes in on potential problem areas and offers step-by-step guidance.

The Audit Risk Assessment Tool is designed to be a more effective and efficient way for experienced auditors to walk through risk assessment standards and document decisions necessary for a well-designed audit program. Firms don’t have to waste time completing numerous checklists that often do not capture the intent of the risk assessment standards.

 “When it comes to spotting problems, you don’t want to miss the forest for the trees,” said Charles E. Landes, CPA, vice president of professional standards and services at the AICPA. “The Audit Risk Assessment Tool is an ideal way for smaller firm auditors to cut through complexity and work smarter.” A subscription to the online tool comes with access to the AICPA guide, Assessing and Responding to Audit Risk in a Financial Statement Audit. A video demo is available on the tool’s product page.