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A "Significant Risk" under SA 315 is:
AA risk affecting only revenue
BA risk in the auditor's personal life
CA risk requiring special audit consideration in the auditor's judgement
DAny risk over Rs. 1 lakh
Answer & Solution
Correct answer: D. Any risk over Rs. 1 lakh
1. SA 315 defines significant risk as one needing special audit consideration.
2. Materiality thresholds and revenue impact are not definitional.
3. It always requires substantive procedures specifically responsive to it.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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