What are all the risks that should be addressed be the auditor?
The new ISA 315 (revised) requires the auditor to identify and assess many different types of risks.
1. What is audit risk?
2. Identification of risk?
3. ROMM at the financial statement level
4. ROMM at the assertion level and the new concept of relevant assertions
5. Assessment of inherent risk (Including the new inherent risk factors)
6. Control risk (New requirements as per ISA 315)
a. Indirect controls
b. Direct controls
7. Assessment of fraud risk
8. The spectrum of inherent risk
9. Significant risks
10. Significant classes of transactions, account balances and transactions
11. The risk assessment procedures that must be performed during the audit
12. Responses to address the assessed Risk of Material Misstatement
What do all these terms mean and how does it fit into a risk-based audit approach?
All auditors and their staff who is responsible for the audit of financial statements
