DAquila, J., K. Capriotti, R. Boylan, and R. OKeefe. 2010. Guidance on auditing high-risk clients. CPA Journal (October): 32-37

1. What are main factors that influence engagement risk?

2. Why should an auditor perform risk assessment procedures?

3. How does an auditor identify significant risks of material misstatement?

4. According to the article, what are the most important strategies firms should use to mitigate risk?

Eilifsen, A. and W. F. Messier, Jr. 2015. Materiality guidance of the major public accounting firms. Auditing: A Journal of Practice & Theory 34 (2): 3-26.

1. What are the three phases of materiality process?

2. What types of information is an auditor allowed to use to identify the overall materiality?

3. According to AS 11, how can an auditor establish materiality levels for particular accounts or disclosures?

4. According to AS 11, what should be the most appropriate tolerable misstatement?

5. Briefly describe the steps of evaluating audit results

6. According to relevant standards, how can auditors determine materiality for group audits?

7. Which benchmark(s) do the sample firms of Eilifsen and Messiers (2015) study determine overall materiality?

8. What are the percentages employed by the sample firms to determine overall materiality?

9. How do the sample firms determine tolerable misstatement?

10. What amounts do the sample firms use to determine what is a clearly trivial misstatement?