The new ISA 315 (revised) requires the auditor to identify and assess many different types of risks. During this session, I am going to explain the meaning of all the different risks that must be identified, assessed and documented by the auditor.
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)
Indirect controls
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
