Page 21 - Day 2 - Planning an Audit

ISA 315

Par 5 states :

• The auditor shall perform risk assessment procedures to provide
a basis for the identification and assessment of risks of material
misstatement at the financial statement and assertion levels. Risk

assessment procedures by themselves, however, do not provide
sufficient appropriate audit evidence on which to base the audit
opinion.

Par 6 states:

• The risk assessment procedures shall include the following:

(a) Inquiries of management, and of others within the entity who in
the auditor’s judgment may have information that is likely to assist
in identifying risks of material misstatement due to fraud or error.

(b) Analytical procedures.

(c) Observation and inspection.