Session 2 Preliminary Planning Activities
Session 2: Preliminary Planning Activities focuses on the critical early-stage decisions that shape audit effectiveness and efficiency. This course explores how auditors gather initial information, perform risk assessment procedures, and apply professional judgment during the planning phase of an audit engagement.
CPE Credit
2.0 Hours
DELIVERY METHOD
Self-Study (On Demand)
LEVEL
Basic
PREREQUISITES
None
PRICING
$119.50 per year
Course Description
Auditing Bits in Bytes™ – Session 2: Preliminary Planning Activities provides a practical, real-world approach to one of the most important phases of the audit process. This course emphasizes how early planning activities—often misunderstood as routine tasks—play a critical role in forming the foundation for risk assessment and audit strategy.
Participants will learn how to gather and evaluate key information about the entity, make informed judgments about materiality and risk, and perform preliminary analytical procedures. These insights directly influence the nature, timing, and extent of audit procedures, helping professionals design more effective and efficient audits.
What You’ll Learn
By the end of this course, you will be able to:
- Understand how preliminary planning activities influence overall audit effectiveness and efficiency
- Identify key information needed to gain an understanding of the entity and its environment
- Apply materiality and performance materiality concepts in early audit planning decisions
- Analyze preliminary analytical procedures to identify risks and significant audit areas
- Evaluate fraud risk considerations and avoid common deficiencies in audit planning
- Identify factors used to determine significant accounts, transactions, and disclosures
Who This Course Is For
This course is designed for:
- CPAs involved in financial statement audits
- Auditors seeking to improve audit planning and risk assessment skills
- Accounting professionals working in audit or assurance services
- Internal auditors responsible for risk evaluation and planning
- Financial professionals needing a refresher on audit fundamentals
- Staff and senior auditors working on non-issuer engagements
Key Topics Covered
- Understanding the entity and its environment for risk identification
- Materiality and performance materiality judgments in audit planning
- Preliminary analytical procedures and their role in risk assessment
- Fraud risk considerations and common audit deficiencies
- Identifying significant audit areas, accounts, and disclosures
- Linking early planning judgments to audit strategy and procedures
- Risk of material misstatement and its impact on audit effectiveness
- Use of practical examples to reinforce audit standards and best practices
Why This Course Matters
Understanding preliminary planning activities is essential for establishing the foundation of an effective audit. These activities help professionals identify risks, define the scope of the engagement, and develop an appropriate audit approach.
A structured approach to planning supports consistent execution and helps ensure that key considerations are addressed early in the engagement. For additional guidance on audit planning and professional standards, professionals may refer to resources published by the American Institute of Certified Public Accountants (AICPA).
Explore additional Auditing CPE Courses to further strengthen your understanding of audit planning and risk assessment.
Pricing & Access
$119.50 per year — Unlimited CPE Access
When you enroll, you receive full access to all courses in our catalog for one full year, including this course and every other available offering.
Unlike many CPE providers, we do not charge by the credit hour and we do not impose course expiration dates. Once you’re enrolled:
- All courses are included — no per-course or per-credit fees
- Your access lasts for a full year from your enrollment date
- Your completed course certificates remain available in your portal
- You can complete courses at your own pace, on your own schedule
This single annual enrollment gives you the flexibility to earn CPE hours when you need them — without worrying about expiring credits or additional costs.
Frequently Asked Questions
Is this course NASBA-compliant?
Yes. This course meets NASBA CPE requirements.
How is the course delivered?
On-demand, self-study format with quizzes for knowledge checks.
Can I complete this course at my own pace?
Yes. You may start, stop, and resume the course as needed.
