THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountant Act, Laws of Kenya)
Risk Based Auditing Seminar – Recording
Date: 24th to 25th August 2022
The approach adopted when carrying out an audit assignment is a key determinant in the outcome of the audit. If auditors fail to adopt the correct audit approach, then the likelihood of audit failure increases. Risk-based auditing is a style of auditing which focuses upon the analysis and management of risk. Audit risk is fundamental to the audit process because auditors cannot and do not attempt to check all transactions.
A risk-based internal audit approach starts with a risk universe as the basis for the audit plan. In a risk-based audit approach, the goal for the department is to address management’s highest priority risks. risk-based audit approach allows internal auditors to respond to organizational risks timelier and provide insights to management to help solve problems on a regular cadence. To enhance those insights, the use of data is critical.
ISA 315 objective is to identify and assess the risk of material misstatements whether due to fraud or error at the financial statements or assertion level. It compels auditors to adopt a risk-based approach to audits. and make risk assessments of material misstatements at the financial statement and assertion levels, based on an appropriate understanding of the entity and its environment, including internal controls.
A traditional audit would focus upon the transactions which would make up financial statements such as the balance sheet. A risk-based approach will seek to identify risks with the greatest potential impact. Risk management is also crucial in maintaining an effective internal control system and having effective corporate governance. It considers the risks of failing to achieve audit objectives and the opportunities created by choosing various audit methods and strategies.
The need to manage risks is increasingly recognized as essential to effective corporate governance and to maintaining an effective system of internal control. Internal audit plays a key role in providing assurance that risks to the organization are properly managed. Risk-based auditing links internal audit to an organization’s overall risk management framework.
During this session we will go through various aspects of risk-based auditing and highlight some of the key considerations: –
- ISA 315- Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and its Environment
- ISA 200 –Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with ISA
- Internal control frameworks in an entity:
- The COSO risk management framework
- ERM – Enterprise-Wide Risk Management
- Risk assessment procedures
- Stages of Risk Based Internal Auditing and Implementation of Risk Based Internal audit
- Model Process for Assessing & Evaluating Risks during audits
- Risk Assessment Tools
CONTINUOUS PROFESSIONAL DEVELOPMENT UNITS (CPD UNITS):
Members of ICPAK and reciprocating professional bodies will be awarded 10 Structured CPD Units upon successfully completion of the Webinar.
Internal auditors, External Auditors, Board members, risk and audit committee chairs and members, Accountants, Chief Risk Officers, Compliance Officers, Audit Officers, Chief Financial Officers, Risk management consultants
The Webinar charges are Kshs. 10,000. Charges will cater for online video access fees, learning materials, and e-certificates of attendance
Registration: Delegates are reminded to note that online booking for webinar is mandatory on https://www.icpak.com/event-registration/Online Booking
We call on Seminar participants to note that booking for is available only online at www.icpak.com/events and will close two hours before the training session. Delegates are reminded to note that online booking for training sessions is mandatory.
NATIONAL INDUSTRIAL TRAINING AUTHORITY (NITA) REIMBURSEMENT:
The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke)