Key Highlights of the Session

The training emphasized the importance of fully understanding the entity, its environment, and its risk exposures when performing a financial statements audit. Guided by PSA 315 (Revised), participants revisited the standards and practical applications of a risk-based audit approach.

Topics covered during the session included:

• The objective of financial statement audits – providing reasonable assurance that financial reports are free from material misstatement.

• The Audit Risk Model and how inherent, control, and detection risks interact.

• Key requirements under PSA 315, including risk assessment procedures, team discussions, and evaluating an entity’s structure, governance, industry, and performance measures.

• The role of laws, regulations, and compliance in ensuring accurate reporting and sustainable operations.

• Practical insights on how to tailor audit procedures based on business-specific risks.

Why It Matters

For auditors and professionals, the ability to obtain and understand the business is more than a compliance step—it is the foundation of an effective audit. By identifying risk areas and aligning audit strategies accordingly, practitioners can ensure accuracy, transparency, and integrity in financial reporting.

Deep Dive on Audit Insights

This re-echo session is part of YRABSC’s continuing commitment to professional growth and team capability building. For those who want to explore the topic further, a detailed summary of this presentation is available on our partner site.

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