Identifying and assessing risk What are all the risks that should be addressed by the auditor?
The new ISA 315 (revised) requires the auditor to identify and assess many different types of risks.
During this session, we will 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)
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?
