Lesson: Audit Risk Summary

Instructor: Nick Palazzolo

The lesson provides a summary of the audit risk section and focuses on the relationships between the different components of audit risk, including detection, inherent control risk. It also discusses how to reduce overall audit risk when one of the components changes. Additionally, it explains the importance of understanding the audit risk formula using imaginary percentages, even though it's not a practical application in real-life situations. The primary goal of the lesson is to prepare individuals for the exam, rather than becoming audit experts. The emphasis is placed on answering questions, practicing SIMS, and reviewing flashcards for a comprehensive understanding of the material.

Updated: June 22, 2023 Create an account

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Recommended Lessons

Audit Risk Overview

Audit Risk Objectives

Introduction to Audit Risk

Audit Risk Formula

Inherent Risk, Control Risk, and Detection Risk

Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Not too bad of a section. I can't say it's terrible. I mean, I hope it really brought some light. If this was an area you struggled with before, this is the first time you're seeing it or wherever, if you knew it and maybe you learned something new or it really reinforced what we're looking at here, hopefully it did the job for you. If not, come bang on my door and throw a rock through my window. Please don't. Let's wrap up with a nice summary. First, I want you to be able to explain the relationships between the components of audit risk. We've beaten those to death, detection, inherent control risk. We want to also know how to reduce the overall audit risk when one of the components changes. And also lastly, be able to plug imaginary percentages into that audit risk formula to understand how it works. As we mentioned, that's not really how it works, but it kind of is, but it kind of isn't, but it kind of is. But also for the purposes of the exam, that is kind of how it works. So our goal is to get you to pass the exam. I'm not here to make you an audit expert. To that, I'd say go get a job at a big four, burn yourself out or something. My job here is to get you passed this exam and you're making good progress if you're at this point. Keep powering through. You got to answer those questions and you got to do SIMS. If you're not doing those, you're not going to be in a very good place. Review those flashcards. Remember, this course is a fully comprehensive. You got to see everything here in order to do well. That being

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Identify Risk During Planning

Module: 5 Concepts, 62 Lessons

Fraud & General Risk at All Levels Overview

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Fraud & General Risk at All Levels Objectives

1:19

Introduction to Fraud and General Risk at All Levels

2:04

The Fraud Triangle