Creating Risks

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 into the relevant tables (RMM at the financial statement level table or RMM at assertion level table)

The following guide will now show you how to add a risk.

At the top of the page you will find a new risk button. To the right of this button you will see a + icon. 

Press 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 now appear to create the risk. 

Please note not all section require an answer to create the risk 

Description - What is your risk:

W/P Ref -  You can reference to a specific workpaper 

Schedule - You can reference which lead schedule the risk could be effecting.

Risk Assessment - This is where you will decide whether the risk need 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 like once completed. This first example is showing a risk at the Financial statement level.

When ready you can then hit the blue Create button.

I 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 a example of this type of risk;

As like 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 have the ability to chose 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. Press 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;