Core concepts
- 01SA 315 (Revised 2019): identify RoMM at FS & assertion level.
- 02Significant risks need special audit consideration — often non-routine or judgmental.
- 03ITGCs and Application Controls — distinguish and test appropriately.
- 04Sec 143(3)(i) — IFC over Financial Reporting (IFCoFR) audit using ICAI's Guidance Note.
- 05Internal audit reliance — SA 610 — assess objectivity, competence, systematic approach.
Flowchart
Risk Assessment Workflow | Understanding Entity & Environment (SA 315) | Identify Risks (Inherent factors + Control deficiencies) | Assess at Assertion Level | Significant Risks Flagged | Design Responses (SA 330)
Exam-critical pointers
- ⭐ICAI Guidance Note on IFCoFR aligned with COSO 2013 framework.
- ⭐Inherent risk factors: complexity, judgment, subjectivity, change, uncertainty.
- ⭐Material weakness / significant deficiency / control deficiency — distinguish for reporting.
- ⭐Audit data analytics (ADA) increasingly relevant — full-population testing.
Make it click