Risk identification

If you have identified potential risks, add them in the engagement file.

To create a risk:

1. Select the Risks icon () from the toolbar and select Risk. The New Risk dialog displays.

2. Enter a Name for the risk and a Description.

   

3. Select the appropriate Level of risk. Select the Financial Statement level if the risk has a pervasive effect on the financial statements and potentially affects many assertions, or select the Assertion level if the risk affects a specific Financial Statement area. In this example, the Assertion level of risk is used, because the risk is specific to one area (inventories).

4. Select Areas and the appropriate area(s) of risk (inventories). In this example, the Assertions affected by this risk, and the Audit Response corresponding document.

   

5. Select Save.

   This risk now appears in B450 Risk report.

B450 Risk report compiles all created risks in one report. You can also use it to add details to each risk.

To edit the risk report:

1. Select a risk to open it.

   

    

   

2. Use the drop-down menu to edit the risk type as required.

   

3. You can also add References and Controls from this page.

   Note: References can be added from the Risk dialog.