GAE2512. Risk Management and SAS 145

In this session, we will explore the key changes introduced by SAS 145, including the revised definitions of inherent and control risk, a greater emphasis on understanding the entity’s system of internal control, and enhanced guidance on identifying significant risks. Participants will gain insight into planning the audit to effectively link risk assessments to the audit procedures planned and performed, including practical examples and documentation tips, and common risk factors and corresponding audit responses to be considered in audits of state and local governments. Additionally, we will discuss common risk assessment matters and deficiencies noted in peer reviews, and best practices to help avoid these pitfalls. 

Learning Objectives:

• Apply key risk assessment concepts of SAS 145
• Identify significant changes brought about by SAS 145
• Recognize the practical impact to the risk assessment process and the work to be performed
• Recognize the areas where practitioners struggle