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Audit International
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SmartEngagement
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CaseWare Working Papers
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CaseWare AnalyticsAI
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CaseWare Cloud Time
PCR
OnPoint PCR (Preparation Compilation Review)
RCT
CaseWare  ReviewCompTax
PBC
CaseWare  Cloud Provided by Client Requests
Audit International
CaseWare  Audit International

CaseWare Audit International - Perform risk assessment

This feature is only available with CaseWare Audit International.

Learn more about CaseWare Audit International

In the risk assessment phase, you:

  • complete the risk assessment documents,
  • document the audit response to assessed risks,
  • and collect information from the client.

Risk assessment workflow

Analytical review

Use the B100 Analytical review to identify relationships (for possible use in substantive analytical procedures), risks, inconsistencies as well unusual transactions, events, amounts, ratios or trends that will likely require an audit response.

The analysis charts in this document are linked to data throughout the engagement to help auditors visually compare data and discover trends and patterns using predefined data analytics.

Use the drop-down to select Preliminary or Final results. Use the filter switches to display the desired analyses figures. This example shows Overall and Relationships.

B100 analytical review

The figures are interactive. Place your cursor over a specific item in the figure to see more information.

B100 total revenue

Select an item below the graph to display more details for it. For example, if Total equity is selected in the above graph, the following displays.

Materiality is shown as the dashed line in the graph. It also appears at the top of the page.

Select Edit documentation comments to add remarks to a figure.

Use the buttons at the top of a widget () to Edit, Reset to default or Hide the figure.

Understanding the entity

The B200 Understanding the entity and its environment form helps the auditor obtain an understanding of the entity and its environment as well as identify possible sources of risk. Based on the responses you select for procedures in B200, extra worksheets and checklists become available in the Documents page and for you to complete.

If you have selected High online collaboration in the A100 Optimizer checklist, the B200Q Understanding the entity and its environment - Query query becomes available. Use this document to request important information about the entity. Client responses provided in this query can help you better understand the entity (and its environment) and identify possible sources of risk.

Refer to Collect information from the client for information on how to send a query.

You can make some changes to query documents if needed or set up and modify visibility settings. See Modify or add visibility conditions and Customize a client request for more information.

Use the B300 Understanding of the entity's controls form to document the auditor’s understanding of the entity’s internal controls.

Risk identification

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

To create a risk:

  1. Select the Risks icon () from the toolbar.

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

  3. Click Select areas and select the appropriate area(s) of risk.

  4. Select .

    This risk now appears in the B700 Risk report.

This document 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 the Edit icon () in a specific risk.

  2. Enter information in the Impact on audit section.

  3. Select the Type of risk, for example, RMM.

  4. Select the financial group the risk applies to in the Financial Groups area.

  5. Add References to specific documents as needed.

  6. Select Apply assertions to assign assertion types to the risk.

  7. Select the Areas to apply the risk to.

  8. Select Save.

Complete the risk assessment documents

Use the B400 Assessment of RMM (including Fraud Risks) form to identify the risks of material misstatements, in particular, risks related to fraud.

For all the Risk Assessment forms, select your preferred method of documentation (Narrative or Procedures) in each section. When you have completed your work, use the Hide button in the Conclusion area to hide the desired documentation decisions.

Identify significant accounts, financial disclosures and particularly sensitive areas with the B500 - Risk assessment report. Use this document to obtain an understanding of material areas and assess each area of the financial statements as having a RMM or no RMM. These selections will drive the visibility of procedures in the fieldwork phase of the engagement.

The example below shows the Property, plant and equipment section of the B500 report for a sample engagement:

Notice that Yes is selected for RMM, which displays the individual RMM assertion types:

  • C—Completeness
  • E—Existence
  • AV—Accuracy and Valuation
  • P—Presentation

In the above example, Yes is selected for Completeness only, meaning the RMM for Property, plant and equipment is specifically a completeness risk. You can also optionally complete the Reason field for each RMM type.

The example also includes a specific risk that is attached to Property, plant and equipment:

Use the B600 Specific areas document to identify any events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. Depending on your responses, you may also need to complete B605 Worksheet - Understanding accounting estimates and B610 Worksheet - Outcome of prior period accounting estimates.

Use the B600 Specific areas document to identify any events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. Depending on your responses, you may also need to complete B605 Worksheet - Understanding accounting estimates and B610 Worksheet - Outcome of prior period accounting estimates.

Document the audit response to assessed risks

C100 Audit response to assessed risks includes the responses to assessed risks at the financial statements level, other audit tasks performed and discussions of significant matters with management.

Select your preferred method of documentation (Narrative or Procedures) for each section. When you have completed your work, use the Hide button in the Conclusion area to hide the desired documentation decisions.

Depending on your responses throughout the Planning and Risk Assessment phases, documents C110 to C150 are included in the Documents page so you can complete the necessary documentation for the engagement.

Collect information from the client

During the course of your engagement, you need to collaborate with clients to request and receive information and documents via Queries.

Queries (or query documents) in CaseWare Audit International have the letter "Q" appended to the document number.

The C105Q Request for records and documents query document consists of multiple sections to request records and documents that you might need in an audit engagement, for example Property, plant and equipment.

Note: The queries included in the Documents page in your engagement file depend on your response to the level of online collaboration question in the A100 Optimizer. If you have responded High, then the C105Q document is not included — instead, an individual query for each financial statement area is included. For example, for Property, Plant and Equipment, the 1.101Q document is included.

Request for records and documents

Refer to Collect information from the client for information on how to send a query.

You can make some changes to query documents if needed or set up and modify visibility settings. See Modify or add visibility conditions and Customize a client request for more information.

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