Identifying and assessing risk of material misstatement including required significant risks (CAS 240 & CAS 315)

Hot topic #3. The objectives of the risk assessment procedures are to identify and assess the risk of material misstatement, whether due to fraud or error. Identification and assessment of risk of material is at the financial statement level and the assertion level for all material financial statements line items. CAS 240 and CAS 315 require management override of controls and revenue recognition to be assessed as significant risks in every audit.