Thursday 10 November 2022


12:00 pm


1.5 CPD Hours

Session Topic

Implementing the revised ASA 315 Identifying and Assessing the Risks of Material Misstatement (Part 2) – Know your client

The requirements and application guidance for ‘Obtaining an Understanding of the Entity and Its Environment, the Applicable Financial Reporting Framework and the Entity’s System of Internal Control’ are extensive and challenging.  Experience has shown that auditors often struggle to understand clients and their business models.  Descriptions are often too general for a meaningful appreciation, and documentation is barely adequate to understand the business and how relevant standards should be applied.

This session addresses:

  • Why knowing the client is so important
  • How to obtain such knowledge
  • Key elements – organisational structure and ownership, governance, business model, external factors, performance measures (Appendix 1)
  • How inherent risk factors affect susceptibility of assertions to misstatement (Appendix 2), and
  • Documentation.
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This session is presented by:

Colin Parker

Principal | GAAP Consulting | Financial Reporting Expert

Colin, Principal of GAAP Consulting, is an expert in financial reporting, auditing and related governance issues, and was previously a member of the Australian Accounting Standards Board.

He has conducted many independent expert and consulting experts reports on professional negligence, and accounting and auditing standards. He is the team leader advisory and litigation services and adviser to GAAP Training and Reportfraud.