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 determine the inherent risk and the control risk. The RMM is automatically calculated based on these risks. These selections drive the visibility of procedures in the fieldwork phase of the engagement.

The example below shows the Inventories section of the B500 report for a sample engagement.

B500 risk assessment

Notice that AV is selected for Slow moving inventory. Available assertion types are:

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

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.

You can also use the ANALYSIS button to view graphical representations of your client's data.

Data analysis

From the above, select Risk to see the associated Risk Assessment.

Risk assessment