• Risk Identification
  • Annotations
  • Audit Documentation and Identified Misstatements
  • Detailed Audit Response Instructions
  • Linking Procedures to Risk
  • Mini Risk Report
  • Risk Identification - Overview
  • Risk Reports - Overview
  • Understanding the Entity
  • Risk Dialog
  • Document menu
  • Adding an Identified Risk
  • Attaching a document reference to a business cycle
  • Copying Risks from within the File
  • Copying Risks from Another Client File
  • Creating Additional Risk Reports
  • Deleting risk in a risk report
  • Modifying Risk in a Risk Report
  • Gathering Information About the Entity
  • Importing Risks

Identifying Risks Through Understanding the Entity

Information is gathered about the entity to help design appropriate analytical procedures, make inquiries, assess the reasonableness of responses, and assess risk. This involves obtaining a general understanding of the organization of the entity: its owners; the industry in which it operates; the entity's operating characteristics; the nature of the entity's assets, liabilities, revenues and expenses, including its production, distribution and compensation methods, types of products and services, operating locations and material transactions with related parties.

Note: All data completed in the document Identifying risks through understanding the entity are rolled forward on a year-end close and retained for use in the following year. Use the Highlight External Cells feature under the Options menu to more easily track these values.

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