ISA 315 was revised for audits of
client with years end of December 2022 or later.

In order to assess for risks as part of a financial statements audit, one needs
to understand the makings of a business.

This will include learning about
the entity, its environment / industry, legal framework, employee structure,
nature of transactions and the internal controls that keep everything together.

You understand a business per ISA 315, so that you can more easily point out
what areas of the financial statements are likely to contain misstatement.

These very areas will be what is
risky in a financial statements audit.

Several new concepts need to be understood:

Inherent Risk Factors, Relevant
Assertions, Significant Classes of Transaction Account Balance and Disclosure
(SCOTABD), Understand and Evaluate Controls versus Test Implementation of
Controls, and Likelihood and MagnitudeSession 3 will focus on:

• ISA 315 (revised in 2022):
  Identifying and Assessing the Risks of Material Misstatement.  
• ISA 315 will be simplified relative to the following aspects:
  
• Identifying what you need to understand better about an entity and its
  environment and the financial reporting framework and therefore what you need
  to document
• Understanding your responsibility around internal controls, their design and
  implementation, and whether you need to do walkthroughs / test controls
• The effect of risks on the audit approach, and how to identify and assess
  risks based on the 2022 revised ISA 315 standar
• New concepts to be discussed include Inherent Risk Factors for assertion
  level risk identification, Relevant Assertions, Significant

Classes of Transactions Account
Balance Disclosure SCOTABD for determining controls understanding requirements
and lastly the requirements around how to assess risk at the assertion level,
namely likelihood and magnitude.

Fundamentally the session will
focus on planning and the considerations thereto, with the view to:

• Simplifying the relevant standards

• Highlighting key elements and

• Providing action points