Thursday 23 November 2023


12:00 pm


1.5 CPD Hours

Session Topic

Understanding a client’s risk-management process

Business risks abound – economic, regulatory, compliance, climate change and greenwashing to name a few. To manage them entities need processes, which vary from informal to well-structured and disciplined.

ASA 315 Identifying and Assessing the Risks of Material Misstatement requires an auditor to understand an entity’s risk-assessment process. This is often a poorly applied requirement of the standard and a missed opportunity to provide a meaningful assessment to the client.

Some auditors and their clients fail to understand risk-management processes. Standards Australia AS ISO 31000 specifies guidelines on managing risks.

This session will:

  • Recap what an auditor is required to do in understanding a client’s risk-management process
  • Identify what the ASX’s governance principles and recommendations, the ACNC, and others say about risk
  • Examine in depth Risk management — Guidelines (AS ISO 31000) and key risk terms in its Risk Management Vocabulary
  • Profile responsibilities of boards and management – risk management guidelines — Companion to AS ISO 31000:2018, Part 1: Boards and executives
  • Illustrate key principles through real-world examples, and
  • Describe the benefits to auditors and entities of having a structured risk-management process.
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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.