Enhance your audit methodology and ensure compliance with professional standards in the course, Audit Testing: Designing Efficient Audit Tests. Led by industry expert Marcus Gunther, this session addresses common challenges in audit testing, specifically focusing on the critical linkage between the Risk of Material Misstatement (RMM) and the extent of audit procedures. Through practical examples and a review of key standards, participants will learn how to design tests that are both efficient and sufficient to withstand practice inspections.

This course guides auditors through the nuances of planning, executing, and documenting audit tests. It moves beyond basic theory to explore the practical application of sampling techniques, the evaluation of internal controls, and the appropriate response to assessed risks. Whether you are dealing with statistical sampling, determining sample sizes, or addressing fraud risks, this presentation provides the insights needed to optimize your audit files and avoid common documentation pitfalls.

Key learning outcomes and topics covered include:

• Summarizing Risk: Strategies for linking inherent and control risks identified in CAS 315 to the extent of testing required under CAS 330.
• Audit Evidence: Understanding the types of audit evidence, assurance levels, and the requirements of CAS 500 to ensure sufficient appropriate evidence is obtained.
• Audit Sampling Methodology: A deep dive into CAS 530, covering monetary unit sampling, defining populations, calculating sample sizes, and extrapolating errors.
• Control vs. Substantive Testing: How to design and implement efficient Tests of Controls (TOC) and Tests of Details (TOD), including when to rely on controls from previous audits.
• Documentation Standards: Best practices for utilizing standard forms (such as PEG forms) to document risk assessments, sampling rationales, and test results.
• Fraud and Automated Tools: Addressing the risk of management override through journal entry testing and utilizing automated tools and data analytics to enhance audit quality.

By the end of this session, professionals will be better equipped to evaluate test results, justify sampling decisions, and navigate the complex requirements of modern audit standards to produce high-quality, defensible audit files.