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What is the overall objective of an audit under ISA 200? What is the difference between reasonable assurance and absolute assurance? What is an assurance engagement and what are its elements? What is the structure of the ISA standards (the numbering series)? What does ISA 330 address? What is ISA 240 about? What does ISA 500 establish about audit evidence? What is ISA 320 about? What does ISA 570 cover? What is the difference between reasonable assurance and limited assurance engagements?
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What does ISA 315 (Revised) require regarding risk assessment?

Intermediate

Answer

ISA 315 requires the auditor to identify and assess the risks of material misstatement through understanding the entity and its environment, the applicable financial reporting framework, and the system of internal control. This includes identifying risks at the financial-statement and assertion levels to design responsive audit procedures.
Real-world example Under ISA 315 the team documents its understanding of the client's business, IT systems, and controls to pinpoint where misstatements could arise.

Common follow-ups: What are financial-statement vs assertion-level risks? | How does ISA 315 link to ISA 330?

Audit Risk & Materiality Internal Controls Evaluation ISA Standards
All 19 ISA Standards questions