Risk Assessment & Internal Control (Advanced)

Core concepts

1. 01SA 315 (Revised 2019): identify RoMM at FS & assertion level.
2. 02Significant risks need special audit consideration — often non-routine or judgmental.
3. 03ITGCs and Application Controls — distinguish and test appropriately.
4. 04Sec 143(3)(i) — IFC over Financial Reporting (IFCoFR) audit using ICAI's Guidance Note.
5. 05Internal audit reliance — SA 610 — assess objectivity, competence, systematic approach.

Exam-critical pointers

• ⭐ICAI Guidance Note on IFCoFR aligned with COSO 2013 framework.
• ⭐Inherent risk factors: complexity, judgment, subjectivity, change, uncertainty.
• ⭐Material weakness / significant deficiency / control deficiency — distinguish for reporting.
• ⭐Audit data analytics (ADA) increasingly relevant — full-population testing.