Many auditors underestimate the importance of obtaining a proper understanding of the entity, the system of internal control, and the relevant financial reporting framework, through the performance of risk assessment procedures. If properly done, it facilitates the risk assessment at financial statement and assertion level and assists with the formulation of an appropriate and efficient audit approach. With ISA 315 (Revised 2019) coming into effect for audits of financial statements for periods beginning on or after 15 December 2021, concepts in the existing standards have been expanded, and new concepts have been introduced in the risk assessment process. It is critical for auditors to understand the concepts addressed in this new standard, and to amend their existing risk assessment processes and methodologies accordingly.
This training will give participants a practical understanding of key requirements relating to ISA 315 (Revised 2019), how to implement them during the audit, and appropriate documentation in audit working papers. In this training session (Part 1) we will explain the risk assessment procedures, and the different areas that an understanding should be obtained of, and discuss the identification and assessment of risk of material misstatement at financial statement level.
Content and outline:
To explain the following concepts and demonstrate their practical application:
- Key concepts and requirements from ISA 315 (Revised 2019), addressing evidence, bias, business knowledge, governance and control system components
- Controls as part of risk assessment
- Risk assessment at financial statement level
- Risk assessment at assertion level
- Relevant assertions
- Significant classes of transactions, account balances or disclosures
- Material classes of transactions, account balances or disclosures that are not significant
- Discussing the correct implementation of requirements in audit working papers.
Upon completion of the training, participants will receive a verifiable attendance certificate.
Enroll for the course, complete each lesson and pass the final quiz to complete the course.