Understanding the entity and its environment is fundamental to an auditor’s identification of the risks of material misstatement. What you need to know is in ASA 315 Identifying and Assessing the Risks of Material Misstatement, and we take a deep dive into it. Four aspects of ASA 315 – business model, governance, regulatory/accounting framework and implementation – are especially targeted. The session complements previous GAAPinars on ASA 315.
The session will:
- Discuss the challenges encountered in practice in applying ASA 315
- Explain why understanding the client’s business model is important
- Describe how to understand, assess, and document governance as a control
- Explain why the regulatory/accounting frameworks need greater attention, and
- Discuss the importance of understanding and documenting a client’s culture of honesty and ethical behaviour.