You are here: User Help > Risk Assessment and Identification > Risk Identification > Understanding the Entity
-- User Help --
-- More Info --

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.

This online help system applies to all CaseWare Audit, Review and Compilation products. Not all features are available in all products.