A full risk library has been created for V26, using the 2026 and subsequent series templates.
These risks are divided into risks at the Financial Statement level (pervasive risks) and risk at the Assertion level (affecting one or more assertions).
A pervasive (FS level) risk is more often created from the early planning areas - Governance checklist, Entity and Environment or Control Environment pages.
For example:
The risk creation itself looks like this:
This risk exists in the library and may be accessed from key words or by scrolling through the dropdown menu.
Note that "Target workpaper" is blank as this risk will inform other risks and will not require any explicit testing.
An assertion risk will most likely be generated from the Trial Balance page (although this is not exclusive).
- These risks will be linked to a "Target Workpaper" as they will be made in context of a siginifiant balance or class of transaction. For example, click the three dots at the end of a section heading to add a risk to the whole section:
The dialog will open showing the context (risks associated with cost of sales in this case):
Select the risk then assess.
- The description or title may be updated.
- The ACCOUNTS page will default to the section or account where the risk was added, and the risk will be sent to the corresponding workpaper.
- The process should be added (where the walkthrough will be carried out and potentially where systems esting may be done).
- Inherent risk factors (as suggested by the Standards) may be selected and the potential financial impact and likelihood of occurrence are assessed.
- If the risk is a fraud risk select the button - this will automatically elevate the risk to Significant and send the risk to the Fraud page in the F section, as well las to the normal risk summary.
For a full download of the risk library see below: