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AuditEssential

Step 1 – Risk Identification

After you create an engagement, the first step in completing the engagement is identifying risks. You identify risks while answering questions in the planning forms you select from the
Navigation
 pane.
As you complete the planning forms, you can add to the engagement any risks that could result in material misstatement of the financial statements. When you identify risks, your audit program will include extended, substantive procedures for the assertions affected by the risk.
To add identified risks:
  1. Click the
    Add Risk
     button in the
    Identified Risks
     pane on the right.
    The Identified Risk window appears.
  2. Enter information about the identified risk, including any audit areas affected by the risk.
    1. Click
      Next
      .
    2. On the
      Assertions for Identified Risks
       window, select any assertions affected by the risk for each audit area.
    3. Click
      Finish
      .
    4. When you have completed all step 1 planning forms, you are ready to go to Step 2 of the risk assessment process.
To edit or delete an existing risk:
You can edit or delete existing risks by highlighting the risk in the
Identified Risk
 pane and then clicking the
Edit Risk
 or
Delete
 button.
To insert or delete rows in planning forms:
In the table areas of planning forms, you can add and delete rows by right-clicking inside a table field and selecting
Insert Row
 or
Delete Row
 from the right-click menu.
To view factors to consider:
Each planning form contains guidance and additional factors for you to consider in the completion of the form. This information is shown in blue text.
Click
Next
 when you are ready to move to the next form, or you can select a form from the
Navigation
 pane.
When you have completed all planning forms, you are ready to continue to Step 2, where you will assess the effects of risk.