Revised risk assessment guidance will require auditors to apply new concepts for calendar year 2023 audits. The concept of inherent risk will remain a critical piece of your risk assessment process, and Statement on Auditing Standards (SAS) No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, has brought a number of changes to enhance clarity and audit effectiveness.
This article will help auditors understand and apply the new concepts and requirements related to inherent