You will now see that following the release of our Enhanced Risk Management content, the way risks are created has changed.
We now have the B30 workpaper (Inherent and control risk assessment), which is where we create our risks and assign them to the relevant tables (RMM at the financial statement level table or RMM at assertion level table)
The following guide will show you how to add a risk.
At the top of the page, you will see the risk button. To the right of this button, you will see a + icon.
Click the plus Icon ; (Note this icon can be used from anywhere within the file. Alternatively, you can click on the button "Risks" itself, and create a risk through here)
A pop-up will appear to create the risk.
Please note not all sections require an answer to create the risk
Description - What is your risk:
W/P Ref - You can reference a specific workpaper.
Schedule - You can reference which lead schedule the risk could be affecting.
Risk Assessment - This is where you will decide whether the risk needs to be in the RMM at Financial level table or RMM at the assertion level table
Audit Plan - All Risks now automatically populate in the Audit plan once created. The audit plan box is asking you to confirm which section this risk needs to sit in.
Below is an example of how the risk should look once completed. This first example is showing a risk at the Financial statement level.
When ready you can then click the blue Create button.
We have now created the risk and this sits within the financial statement level table.
The columns within the table will now become active.
If we now create an assertion level risk instead, there is additional functionality added to the B30 workpaper.
Below is an example of this type of risk;
As with the financial statement level risk, we are now able to fill in the relevant columns in the table once the risk has been created. The biggest difference with assertion level risks is that this is where you can create the follow-up accounting estimates workpapers.
You can choose whether to create a B31X, B32X, or both.
Select which one you would like to create and click to add it. You will then be prompted to ensure you wish to generate the correct workpaper. Click Create.
Your new workpaper will be created and linked to your risk;
Finally, all risks that are created are pushed through into the Audit plan as seen below;
Rolled Forwarded Risks
Once you have rolled forward a file, any risk created in the previous year will be rolled forward and labelled with a Prior Year Risk tag. This can be found by clicking on the Risks option at the top of the working paper index.
If a risk is no longer required, you are able to archive these risks by doing the following:
Select the dropdown option found next to the Prior Year Risk tag to expand the risk;
Select the option to Archive the risk;
A pop up will appear for you to document why this risk is no longer applicable. Enter in your description and then you can select Archive;
Your archived risk will now be hidden in the live section of Risks;
To find out more about filtering the Risk and viewing archived risks, please see the following article Risk - Filters