SAS 145: Assessing the Risks of Material Misstatement

Scalability, Stand-Back Provision, Determining Inherent and Control Risk

A live 110-minute CPE video webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Monday, December 11, 2023

1:00pm-2:50pm EST, 10:00am-11:50am PST

(Alert: Event date has changed from 8/2/2023!)

or call 1-800-926-7926

This webinar will discuss implementing the significant revisions made to risk assessments by Statement of Auditing Standards (SAS) 145. The level of risk, or susceptibility of financial statements to misstatements, guides the audit process. Our panel of experienced auditors will review the updated and new definitions in SAS 145 and walk CPAs through the process of determining audit risk under the new standard.


Although purported to enhance the risk standards, SAS 145 is massive. It recognizes new complexities in audits, including the use of remote inventory observations with drones and video cameras and the use of data analytics. It includes updated and new definitions and is effective for audit periods ending on Dec. 15, 2023, and after.

Risk assessments set the course for an audit. Failure to sufficiently assess risk is a common deficiency cited in peer reviews. SAS 145 requires auditors to separately assess inherent and control risk and provides a new definition of significant risk. There are unique considerations when an auditor omits testing controls and assesses control risk at a maximum.

Somewhat welcomed is scalability. Recognizing that the size and complexity of engagements vary, SAS 145 allows an auditor to employ judgment when designing relative procedures to comply with these guidelines. Also new is a stand-back provision requiring the auditor to evaluate the completeness of the selection of classes of transactions, account balances, and disclosures. It is clear that SAS 145 significantly impacts the audit process going forward.

Listen as our panel of A&A experts details the new and updated components of SAS 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement for auditors.



  1. Assessing risk: an introduction
  2. Definitions
  3. Assessing risks
    1. Inherent risks
    2. Control risks
  4. Maintaining professional skepticism
  5. Scalability
  6. Stand-back requirement
  7. Documentation
  8. Other considerations


The panel will cover these and other key considerations:

  • The interplay of inherent and control risks
  • Exercising judgment under the new scalability provision
  • Applying the new stand-back requirement
  • How assessing control risk at a maximum impacts an audit
  • Best practices for implementing SAS 145


Marciano, Philip
Philip Marciano, CPA, CGFM

Managing Director
CBIZ Marks Paneth

Mr. Marciano is a Managing Director and a member of the Nonprofit, Government and Healthcare Group located in our...  |  Read More

Additional faculty
to be announced.
Attend on December 11

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend December 11?

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.