Revised CAS 315, Identifying and Assessing the Risks of Material Misstatement, was effective for audits of financial statements for periods beginning on or after December 15, 2021. Much has been learned since then. The identification and assessment of various risks is the cornerstone of the audit planning phase and this course will review all of the requirements of CAS 315.

A robust risk identification and assessment process is essential to the identification of the procedures to be completed. This course will review the key requirements of CAS 315 to help you, the auditor, apply the audit risk model in planning your audit engagements.

This course reviews the requirements of CAS 315, Identifying and Assessing the Risks of Material Misstatement. This course will focus on the application and documentation of some key areas including obtaining and understanding of the IT Environment and GITCs, along with the understanding and responses required related to journal entries.  

This course builds on your understanding of planning an audit, with a risk-based approach, based on a strong understanding of the business and its environment, including technology. The course will discuss the use of professional judgment and skepticism at the planning phase and will address documentation requirements.

This course will address the many risks that must be identified and assessed and will focus on inherent risk assessment at the financial statement and assertion levels, including the identification of significant inherent risks. It will also address the control risk assessment. 

Topics Include:

• Overview of the requirements of CAS 315.
• Assessing risks of material misstatement at the financial statement and assertion level, considering the inherent risk factors, the spectrum of inherent risks, significant risks, fraud risks, etc.
• Components of internal control.
• Designing responses to risks identified.
• Activities and application examples will be included to demonstrate the application of CAS 315 requirements, including scalability considerations.

NOTE: This course description has been revised and reflects updates for 2024. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants should be able to:

• Understand the concept of “scalability” and how the requirements of CAS 315 vary based on the nature and size of an organization.
• Identify the key requirements of CAS 315 and how they can be met, considering the objective to be efficient in the planning and completion of  your audit engagements.
• Conduct the assessment of inherent risks of misstatement, and how the “spectrum of inherent risk” is to be applied to relevant assertions.
• Conduct the assessment of control risk, recognizing the role of technology in your clients’ operations and processes.