Risk analysis improvements

We have updated our list of assertions in both the risk analysis area and in the detailed testing pages.

The old list was as follows:

  • Existence
  • Completeness
  • Value
  • Ownership
  • Allocation
  • Occurrence

This original list was based partly on the older ISA (NZ) 315 and partly on what had been normal practice in my training (obviously in the distant past). I have had discussions with a number of experienced auditors in he past and asked if we should extend this list. They have seemed fairly relaxed about it and said that accuracy is implied by completeness and value; classification is another word for allocation; cut-off is covered by allocation (allocated to the correct period). So I hadn't bothered to change.

However after being asked by another client (who's file had been reviewed by OAG) I reread the current ISA (NZ) 315 (Revised) and see that the list in A129 is quite specific, so we have changed the wording to reflect that. There are two new items (cutoff and presentation) plus some updates to the descriptions. The updated list is as follows:

  • Occurrence
  • Completeness
  • Accuracy/Value
  • Cutoff
  • Existence
  • Classification/Allocation
  • Rights and obligations/Ownership
  • Presentation


The other change we have made as requested by the OAG was in the ability to rate the risks associated with individual assertions (as per screenshot). For backwards compatibility any selected risks have been assigned the same level as overall risk. Users may wish to review their open jobs to make sure this makes sense. When assessing risks we would suggest that the overall risk is at least as high as the highest assertion risk identified.  As before a low total risk will just display the options above, but anything higher will open a further range of analysis:


A completed analysis will look like this:


See here for full instructions on risk analysis.


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