Understanding the entity, its environment, the system of internal control — and the risks that result.
To identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels.
SA 315 sits in the Risk Assessment phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 315 into practice — built from the ICAI working-paper set, free to download.
And when you want SA 315 executed and documented automatically — your first audit on CORAA is free.
SA 315 — Identifying and Assessing Risks of Material Misstatement — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Understanding the entity, its environment, the system of internal control — and the risks that result. To identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 315 in the risk assessment phase, that means evidencing: Understanding the entity and its environment (industry, regulatory factors, ownership); Understanding the entity's system of internal control — five components; Identification of significant risks (those requiring special audit consideration).
