Attendance at this seminar will secure 6.5 hour/s verifiable CPD points including other professional bodies (SAICA, SAIBA, ACCA, IACSA, IRBA & etc)
YVONNE ROSSOUW
yvonner@probetatraining.co.za
The revised standards provide for major changes in the approach to identifying and assessing risks, which will ensure a focused response from auditors to these risks. The enhancements affect all audits, and audit firms of all sizes will need to revise their approach to risk assessment.
Readiness for the changes needs to be on every audit firm’s to-do list.
Firms need to take note of some practical challenges in transitioning to the revised International Standard on Auditing (ISA) 315.
Auditors are urged to familiarise themselves with the revised requirements to ensure a smooth transition in implementing the revised standard.
• New terminology, concepts, and requirements
• New assertions and combinations of assertions
• New risk assessment procedures (RAP) to obtain an understanding of the entity and its environment
• Document the sources of information from which the understanding was obtained
• Class of transaction or account balance ("COTAB")
• Individual Account balance, class of transaction, and other disclosure ("COTABD")
• Significant classes of transactions, account balances, and disclosures (“SCOTABD)
• Transactions related to account balances (“TRAB”)
• Relevant assertions
• Controls to be identified for purposes of evaluating the design of a control and determining whether the control has been
• Identification of the risk of material misstatement at the assertion level for COTABD and then assess only the identified
risks of material misstatement at the assertion level
• Consider whether automated tools and techniques should be used to assist with obtaining an understanding of the entity
and its environment and to perform risk assessment procedures.
• Extent of work needed for indirect and direct controls
• Use of inherent risk factors
• Spectrum of inherent risk
• Likelihood and magnitude of a possible misstatement on a range from higher to lower, when assessing risks of material
misstatement
• “Stand-back" provision to evaluate the completeness of SCOTABD
• Design and perform substantive procedures for each material COTABD
• Substantive procedures for SCOTABD, i.e., those with relevant assertions
• Specific procedures to perform when a significant risk is identified (including fraud testing)
• Assertions to be tested for material COTABD as well as an immaterial COTABD
