How to Identify a Risk from a Working Paper
1. Select the working paper and do one of the following actions:
- Right click on the working paper to open its context menu and select Identified risks
- Click the Identified risks button, located on the toolbar
3. Click the Add risk option.
4. Enter a short description of the identified risk in the Risk field.
5. By default, the Likelihood and Impact options are set to 0-Undefined. It is not obligatory to select their values in initial risk identification. When you select the values, AuditDesktop will automatically assess the Risk level.
6. Mark whether the risk is Significant or not. If you set a High or Very high risk level, the program will automatically mark it as Significant. Uncheck the box if you do not wish the risk to be marked as such.
7. In the Affect statements box, mark whether the risk affects the entire statement, i.e. all statement items.
8. In the Affect materiality box, mark whether the risk affects the determining of materiality.
9. Enter a more detailed description of the identified risk in the Description field (optional).
10. In the Items section, select which Management assertions are affected by the risk and mark the respective Statement of financial position and Income statement items.
11. In the Control activities section, select the control activities, if any. Define whether the specified control activity affects the entire statement.
12. Click the Save button.