ISA 315 Revised Identifying and Assessing the Risks

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 September 20, 2019

ISA 315 (Revised) – Walkthrough of the Standard Par # Requirements 1 – 15 Scope, Key Concepts, Effective Date, Objective 16 – 24 Definitions, Risk Assessment Procedures, Understanding the System of Internal Control 28 – 43 Components of the System of Internal Control, Deficiencies 45 – 54 Identifying ROMM, Assessing IR & CR, Documentation Page 2

ISA 315 (Revised) – Walkthrough of the Standard Par # A 1 – A 36 Application Materials Essential AM to definitions through to Observation & Inspection as RA Procedures A 37 – Info from Other Sources to Understanding the Entity and its Applicable Financial Reporting A 47 eb Framework A 49 – A 82 The Entity & Its Environment, to the Applicable Financial Reporting Framework A 88 a – How IRFs affect Susceptibility to Misstatement, to Obtaining an Understanding of the Control A 114 b Environment A 117 – A 177 Obtaining an Understanding of Risk Assessment Process, to Control Activities Page 3

ISA 315 (Revised) – Walkthrough of the Standard Par # A 177 a – A 220 c A 201 – A 239 a A 239 b – A 246 Application Materials Other controls the auditor considers appropriate, to Control Deficiencies Identifying and Assessing ROMM, to Assessing Control Risk Evaluation of Audit Evidence to Documentation Page 4

ISA 315 (Revised) – Walkthrough of the Standard Par # Appendices App 1 Appendix 1 – Considerations for Understanding the Entity & Its Business Model App 2 Appendix 2 – Understanding the Inherent Risk Factors App 3 Appendix 3 – Understanding the Entity’s System of Internal Control App 4 Appendix 4 – Considerations for Understanding an Entity’s Internal Audit Function App 5 Appendix 5 – Considerations for Understanding IT App 6 Appendix 6 – Considerations for Understanding General IT Controls Page 5

ISA 315 (Revised) ‒ Conforming Amendments ISA Conforming Amendments 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements 330 The Auditor’s Responses to Assessed Risks 540 (Revised) Other Auditing Accounting Estimates and Related Disclosures Various – Supplement to Agenda Item 2 -I – NO CHANGES Page 6

www. iaasb. org For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac. org.