❖ What is audit risk? ❖ Identification of risk? ❖ ROMM at the financial statement level ❖ ROMM at the assertion level and the new concept of relevant assertions ❖ Assessment of inherent risk (Including the new inherent risk factors) ❖ Control risk (New requirements as per ISA 315) o Indirect controls o Direct controls ❖ Assessment of fraud risk ❖ The spectrum of inherent risk ❖ Significant risks ❖ Significant classes of transactions, account balances and transactions ❖ The risk assessment procedures that must be performed during the audit ❖ Responses to address the assessed risk of Material Misstatement ❖ Implementation guidance for the new ISA 540; Risk assessment of accounting estimates and relevant procedures. What do all these terms mean and how does it fit into a risk-based audit approach?