ISA 315 Revised Identifying and Assessing the Risks
- Slides: 7
ISA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement Fiona Campbell, ISA 315 Task Force Chair & Deputy Chair of the IAASB Meeting – New York, USA Agenda Item 2 Thursday, September 19, 2019
What has the Task Force done? • Definitions and Requirements • Application Material • Appendices • Conforming amendments will come later tonight Page 2 | Confidential and Proprietary Information
Conforming Amendment to ISA 200 A 15(a) Risk of Material Misstatement (Ref: Para. 13(n)) A 15 a. For the purposes of the ISAs, a risk of material misstatement exists when there is: (a) A reasonable possibility of a misstatement occurring (i. e. , its likelihood); and (b) If it were to occur, have a reasonable possibility of being material (i. e. , its magnitude). Page 3 | Confidential and Proprietary Information
Fatal Flaw Alternative Risk of Material Misstatement (Ref: Para. 13(n)) A 15 a. For the purposes of the ISAs, a risk of material misstatement exists when: (a) there is a reasonable possibility of a misstatement occurring (i. e. , its likelihood) and (b) that misstatement is material (i. e. , its magnitude). Page 4 | Confidential and Proprietary Information
TF Needs Clear Direction – Reactions Please…. • Options: • 1. Leave the words as they have been drafted by the TF • 2. Remove entirely (not the TF preferred option) Page 5 | Confidential and Proprietary Information
Next Steps • Enjoy an early dinner • Full standard (excluding CA) no later than 8 pm • Conforming Amendments – later tonight • Taskforce members and staff will be available during tomorrow’s (Friday) reading time Page 6 | Confidential and Proprietary Information
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