Note:Some options in the dialog may not available as they are disabled by your firm author.
|Risk Doormat Menu
Click the doormat icon () to open the Risk Doormat menu. The menu lists risks, controls and reportable items that have been defined. You can create, delete and edit a risk, controls or reportable items from this menu.
You can also remove risks, controls and reportable items in bulk by clicking the Delete (x) button to the right of the heading.
|Type a description in the New risk name field.
|Click the arrows to display the previous and next risk. The order in which risks are displayed is specified in the risks drop-down. This field is visible only if you have accessed this dialog from within a risk report.
New risk name
Type a short description of the identified risk.
The identifier field is automatically populated with the user ID and a sequential number so that each risks, controls and reportable items are unique. This field can be enabled in the AO - General Options in the master template.
New risk description
Type a detailed description of the risk.
What Can Go Wrong
Type a description of the possible impact.
The Source/Reference field is automatically populated when creating the risk from within a document.
Financial Statement Areas
Click to display a list of Entity level risks and material financial statements areas (FSAs). From the dialog, select one or more items that affect the identified risk. Once the relevant items have been selected, check off the related assertions within the Financial Statement Areas Affected area. As the material FSAs and assertions populate from the Financial Statement Areas worksheet, the worksheet must be generated before they can be selected.
(missing snippet link)Note: Any assertions that are not relevant to the FSA will be greyed-out.
Business Cycles Affected
Click to display a list of affected business cycles associated with the risk. The list in business cycles is defined in the Financial Statement Areas worksheet.
Note: If an FSA item in the Financial Statement Areas worksheet is already associated with a business cycle through the Financial statement areas worksheet, this area will be automatically filled out with the selection of Financial Statement Areas Affected.
In a consolidated file, select the applicable entity the risk relates to. This field can be enabled in the AO - General Options in the master template.
Inherent Risk Factors
Click to display a list of inherent risk factors. Select the applicable factors from the list and click OK.
Inherent Risk Factors Categories
Click to display a list of inherent risk factor categories. Select the applicable categories from the list and click OK.
Inherent Risk Factors Description
Click to enter a description for the inherent risk factors.
Significant Risk Indicators
Click to display a list of significant risk indicators. Select the applicable indicators from the list and click OK.
Procedures other than Substantive
Select to indicate if the risk requires procedures other than substantive.
Test of Controls
Select to indicate if the risk requires test of controls.
Likelihood to Occur
Select the likelihood of the risk to occur from a range of 1 (low) to 5 (high).
Select the monetary impact of the risk from a range of 1 (low) to 5 (high).
Select to rank the inherent risk as high, medium or low. If the template author enables the automation of Inherent Risks, the Inherent Risk is automatically assessed.
Select to rank the control risk as high, medium or low. If the template author enables the automation of Control Risks, the Control Risk is automatically assessed.
Select to rank the potential RMM as high, medium or low.
Select to rank the residual risk as high, medium or low.
Select to rank the RMM as high, medium or low. If the template author enables the automation of RMM, the RMM is automatically assessed.
This is automatically selected when a significant risk indicator is added to the risk.
Select to include the risk in the next year's file. This is automatically selected for new risks.
Type the details of any response from management and any controls they have implemented to deal with the identified risk.
Conclude whether the risk has been mitigated by these controls.
Type the details of the detailed audit response that will respond to the identified risks and provide the evidence necessary to support the audit opinion. The detailed audit response would include the type of test that would be planned: test of control, specific procedure, substantive analytical procedure, or substantive sampling. If the template author enables the automation of Audit Responses, the Audit Response is automatically assessed.
Audit has properly addressed this risk
Conclude whether the risk has been addressed by the audit response.
The Addressed field is automatically populated when an item is selected from the Financial Statement Area and that item has been linked to a document in the Financial Statement Area worksheet.
Click beside Control, to add controls to the risk. The following choices appear:
This option is available only if you have enabled controls in the AO - General Options document.
Click beside Reportable Item, to add reportable items to the risk. The following choices appear:
This option is available only if you have enabled reportable items in the AO - General Options document.
This online help system applies to all Caseware Audit, Review and Compilation products. Not all features are available in all products.