Dr. Dan Kneer Advisory Group
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Dr. Dan Kneer Advisory Group |
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Risk Assessment MethodologiesIt was the landmark Statement on Auditing Standards, SAS 47, which laid the groundwork for modern-day risk assessment. That SAS clearly said that RISK is the DOG and SAMPLE SIZE was the TAIL. So you cannot say “all our audits are 2 weeks long” AND say “by the way, we risk assess each audit.” (There is nothing wrong with 2-week audits … just recognize them for what they are. In fact, see our course entitled Quick Response Auditing for these type of audits.) Further, if you say “we always take a sample of 30 (regardless of risk), that’s NOT a risk-based approach. (Again, nothing wrong with it … just call it what it is.) The new suite of risk-assessment SASs plead for a more precise risk assessment (methodology, application, linkage to scope and documentation.) Here is an amazing, and true audit research finding ... research shows that an auditor’s personality plays a part in their risk assessment, and thus sample sizes. That is, if you are (personally) risk-averse, you will “score” the risk as “high” and take larger samples. A risk-taker tends to score risk low, and select smaller samples. IS THIS CRAZY, OR WHAT? So your department’s audit methodology is reduced to personalities! GEEZE! In this course we will “clear the air” about risk assessment, while examining the most common approaches to risk assessment. We’ll also look at some cool risk assessment software. Then we will make sure that the actual risk assessment bridges to the resultant sample size. By the way, we’ll learn risk assessment at the macro level (account balance) and at the micro level (assertion level). The more granular you can get on you assessments the more likely you will not under or over audit. THIS CLASS HAS A STRONG HANDS-ON COMPONENT, WITH SEVERAL COMPUTERIZED CASES. WE CAN TEACH BOTH OFFICE 97-2003 AND 2007. |
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Copyright © 2009 Dr. Dan Kneer Advisory Group.
All rights reserved. Last Updated: 30 July 2010 |
