Audit engagement – CAS 315/530, RMM and Assessing the number of tests

Length: 7 h 00

Improved training for 2023-2024


Audit files are complex engagements that require rigorous documentation in accordance with CAS. In an effort to balance efficiency and effectiveness with the practitioner’s time and risks, a CPA must assess the risks of material misstatements (RMM) and the number of tests needed to adequately address his or her risk assessment.

Too often, professional inspections criticize practitioners for not documenting the number of tests based on the risks, and question whether the tests adequately cover the RMM.

Incorporating the new valuation and documentation requirements of CAS 315 – Revised, this course focuses on RMM assessments by line item in the financial statements, for both private enterprises (PE) and not-for-profit organizations (NPO). In response to the established level of risk, the practitioner should document their assessment of the number of tests of details and make a selection consistent with CAS 530 Audit sampling.

At the end of the day, the practitioner will be better able to:

  • Document the accounting systems, internal controls and IT environment for RMM assessment, in accordance with the requirements of CAS 315
  • Select a mixed or substantive approach
  • Respond appropriately to RRM to obtain adequate and sufficient evidence
  • Determine the size of tests of detail and tests of internal controls
  • Use the statistical or non-statistical approach for determining the number of tests


Planning the audit engagement 

  • Understanding the business
  • Documenting internal control and walk-throughs
  • Assessing RMM by financial statement item
    • Considering the risks of fraud
    • Considering the business risks
    • Considering the analytical procedures
    • Conclusion, to document according to the risk assertions
  • Determining the audit approach (mixed or substantive)
    • PE
    • NPO

Execution of the audit engagement 

  • Determining the number of substantive tests
    • According to a risk factor and the materiality threshold
    • According to a statistical approach
    • According to a percentage of coverage approach
  • Determining your firm’s policies on choosing the various tools proposed for determining the number of tests
  • Documenting the results obtained
    • Extrapolating the errors found

Last but not least 

  • Presentation of the changes made to the Paradigme Audit Questionnaires
  • Comments from the professional inspection
  • Discussion with participants


Please contact André Mignault at 514-686-7341 to schedule your training.

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