Auditors identify and assess risks of material misstatement to provide a basis for designing audit procedures to respond to these risks. If only it were as simple as it sounds! This CPE-eligible (1.5 CPE), eLearning course, begins with the foundational concepts of risk and risk assessment and then discusses how to identify risks. Identifying risks involves a thorough understanding of the entity and its environment, the applicable financial reporting framework and system of internal control, which are all discussed along with the related risk assessment procedures. Once risks are identified, auditors must then assess these risks using the inherent risk spectrum to determine whether risks rise to a level of significant risk. The course concludes with a discussion of other considerations related to the risk assessment process, including the required stand-back assessment requirement, revision, and documentation. This course covers the following U.S. GAAS and PCAOB standards: AU-C 315 and AS 2110.