Areas of Higher Assessed Risk of Material Misstatement, or Significant Risks Identified in Accordance with ASA 315 (Ref: Para.  9(a) …

ASA 260 requires the auditor to communicate with those charged with governance about the significant risks identified by the auditor. [23]   Paragraph A13 of ASA 260 explains that the auditor may also communicate with those charged with governance about …

ASA 315 defines a significant risk as an identified risk of material misstatement  for which the assessment of inherent risk is close to the upper end of the spectrum of inherent risk due to the degree to which the inherent risk factors affect the …

However, this may not be the case for all significant risks.  For example, ASA 240 presumes that there are risks of fraud in revenue recognition and requires the auditor to treat those assessed risks of material misstatement due to fraud as significant …

ASA 315 explains that the auditor’s assessment of the risks of material misstatement at the assertion level may change during the course of the audit as additional audit evidence is obtained. [27]   Revision to the auditor’s risk assessment and …

Significant Auditor Judgements Relating to Areas in the Financial Report that Involved Significant Management Judgement, Including Accounting Estimates that Are Subject to a High Degree of Estimation Uncertainty (Ref: Para.  9(b) …

ASA 260 requires the auditor to communicate with those charged with governance the auditor’s views about significant qualitative aspects of the entity’s accounting practices, including accounting policies, accounting estimates and financial statement …

However, users of the financial report have highlighted their interest in accounting estimates that are subject to a high degree of estimation uncertainty (see ASA 540 [29] ) that may have not been determined to be significant risks.  Among other things, …

The Effect on the Audit of Significant Events or Transactions that Occurred during the Period (Ref: Para.  9(c) ) …

Events or transactions that had a significant effect on the financial report or the audit may be areas of significant auditor attention and may be identified as significant risks.  For example, the auditor may have had extensive discussions with …