Risk assessment procedures
Risk assessment procedures obtain evidence to identify and assess risks of material misstatement at financial-statement and assertion levels. They can include inquiries, analytical procedures, observation and inspection, supported by professional scepticism.
Worked example
The auditor compares revenue trends, discusses a new contract process and inspects system documentation.
Common mistake
Risk assessment alone does not replace the further audit procedures needed to respond to assessed risks.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |