Available Course
Auditing Standards 3: Planning - Understanding the Entity and Performing Risk Assessment
>> Click here to book this training as an In-House course <<
| Duration: | 4.00 |
| CPD Hours: | Attendance at this seminar will secure 4 hour/s verifiable CPD points including other professional bodies (SAICA, SAIBA, ACCA, IACSA, IRBA & etc) |
| Course Facilitator: |
Tristan White
T: 0118861395 E: gillian@probetatraining.co.za |
| Back | |
ISA 315 was revised for audits of clients with years end of December 2022 or later.
In order to assess for risks as part of a financial statements audit, one needs to understand the makings of a business. This will include learning about the entity, its environment / industry, legal framework, employee structure, nature of transactions and the internal controls that keep everything together.
You understand a business per ISA 315, so that you can more easily point out what areas of the financial statements are likely to contain misstatement. These very areas will be what is risky in a financial statements audit.
Several new concepts need to be understood: Inherent Risk Factors, Relevant Assertions, Significant Classes of Transaction Account Balance and Disclosure (SCOTABD), Understand and Evaluate Controls versus Test Implementation of Controls, and Likelihood and Magnitude
Session 3 will focus on:
o ISA 315 (revised in 2022): Identifying and Assessing the Risks of Material Misstatement
Fundamentally the session will focus on planning and the considerations thereto, with the view to:
• Simplifying the relevant standards,
• Highlighting key elements and
• Providing action points
2022 Revised ISA 315 will be simplified relative to the following aspects:
• Identifying what you need to understand better about an entity and its environment and the financial reporting framework and therefore what you need to document
• Understanding your responsibility around internal controls, their design and implementation, and whether you need to do walkthroughs / test controls
• The effect of risks on the audit approach, and how to identify and assess risks based on the 2022 revised ISA 315 standard
• New concepts to be discussed include Inherent Risk Factors for assertion level risk identification, Relevant Assertions, Significant Classes of Transactions Account Balance Disclosure SCOTABD for determining controls understanding requirements and lastly the requirements around how to assess risk at the assertion level, namely likelihood and magnitude
☒Auditors
☒Audit managers
☒Audit partners
☒Engagement Quality Control Reviewers