Identifying, assessing and responding to risks of material misstatement are at the core of every audit. However, in more than half of all audits, firms aren’t properly assessing risk or linking their assessment to their audit procedures
The resources below will help you perform more effective risk assessments, appropriately link your risk assessments to your audit procedures and comply with the standards.
Featured Risk Assessment Resources
- Audit Risk Assessment Tool
This comprehensive template will help you identify, assess and document your planned response to risks of material misstatement and make your audit more effective and more efficient.
- Infographic—The four most common risk assessment violations
Learn about the most common areas of non-compliance with AU-C 315 and AU-C 330 identified by the Peer Review Program.
- Staff Training Workshop Presentation (PPT)
Use this PowerPoint presentation with speaker notes and this staff training case study to educate your firm on proper risk assessment and response as well as common misconceptions to avoid.
- Internal inspection aid
This tool will help you identify non-conformity with AU-C 315 and AU-C 330 during your firm’s internal inspection. The aid also provides guidance on how those findings should be addressed.
- Quiz: Is your audit addressing your client’s risks?
Take this quick quiz from the Journal of Accountancy to see if you’re up to speed on how to assess and respond to risk.
- Frequently asked questions
Get answers to the most common AU-C 315 and 330 questions received by the Center for Plain English Accounting (CPEA). The CPEA’s team of experts helps member firms understand and implement standards by sharing technical advice in a straightforward manner.
- Aid for identifying controls at smaller entities
You may think a smaller client has no controls, but that’s virtually never the case. Even the smallest entities have policies and procedures designed to prevent or detect and correct material misstatements. This aid will assist you in identifying controls at your smaller clients.
- Why assess audit risk? So you don’t get lost in the woods, AICPA Insights, August 2018
- Taking the risk out of risk assessment, Journal of Accountancy, August 2018
- Audit guide
The definitive source for guidance on applying the core principles of the risk-based audit methodology required for all financial statement audits.