Home › CA Final › auditing › Special Aspects of Auditing in an Automated Environment › Under SA 315, the auditor must identify and asse…
Under SA 315, the auditor must identify and assess risks of material misstatement (RoMM):
AAt both the financial statement and assertion levels
BOnly at the financial statement level
COnly for fraud risks
DOnly for related party transactions
Answer & Solution
Correct answer: A. At both the financial statement and assertion levels
1. SA 315 requires identification of RoMM at FS and assertion levels.
2. This dual-level assessment drives the design of further audit procedures.
3. Fraud and related-party are subsets handled by SA 240 / SA 550 respectively.
_Source: ICAI BoS CA Final Paper 3, Ch 4 "Special Aspects of Auditing in an Automated Environment"_
Related questions
When evaluating an "Information Produced by the Entity" (IPE) report used as audit evidencA "single ID with admin privileges shared across the IT operations team" is a classic violA robotic process automation (RPA) bot performs three-way matching of PO/GRN/Invoice in thIn data-driven audit, the False-Positive Rate of an exception flag is HIGH. The auditor's Which of the following findings would most likely indicate a Material Weakness in IT generWhich is the BEST control to detect ghost employees in an automated payroll system?A cloud-based accounting application is hosted by a third-party SaaS provider. Under SA 40For Big Data analytics on the audit of a bank's loan portfolio, the MOST informative analy