Statement on Auditing Standards (SAS) No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, is the mandatory standard for all U.S. GAAS financial statement audits. This course provides an in-depth exploration of the enhanced requirements designed to address common audit deficiencies and elevate overall audit quality. Participants will gain a practical understanding of the core changes to AU-C Section 315, including the requirement for separate inherent and control risk assessments and the new "spectrum of inherent risk".

The session specifically targets the critical role of Information Technology (IT) by examining the updated requirements for evaluating General IT Controls (GITCs) and assessing risks arising from the use of IT. Attendees will also learn to apply the new "stand-back" requirement to ensure the completeness of their risk identification and discover how to scale these procedures for entities of varying sizes and complexities.