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Learn
Step 1 – Risk Identification
After you create an engagement, the first step in completing the engagement is identifying risks. You identify risks while answering questions in the planning forms you select from the
Navigation
pane.
As you complete the planning forms, you can add to the engagement any risks that could result in material misstatement of the financial statements. When you identify risks, your audit program will include extended, substantive procedures for the assertions affected by the risk.
To add identified risks:
- Click theAdd Riskbutton in theIdentified Riskspane on the right.The Identified Risk window appears.
- Enter information about the identified risk, including any audit areas affected by the risk.
- ClickNext.
- On theAssertions for Identified Riskswindow, select any assertions affected by the risk for each audit area.
- ClickFinish.
- When you have completed all step 1 planning forms, you are ready to go to Step 2 of the risk assessment process.
To edit or delete an existing risk:
You can edit or delete existing risks by highlighting the risk in the
Identified Risk
pane and then clicking the Edit Risk
or Delete
button. To insert or delete rows in planning forms:
In the table areas of planning forms, you can add and delete rows by right-clicking inside a table field and selecting
Insert Row
or Delete Row
from the right-click menu.To view factors to consider:
Each planning form contains guidance and additional factors for you to consider in the completion of the form. This information is shown in blue text.
Click
Next
when you are ready to move to the next form, or you can select a form from the Navigation
pane.When you have completed all planning forms, you are ready to continue to Step 2, where you will assess the effects of risk.