What it is
SAS 145 (AU-C 315) requires separate assessments of inherent risk and control risk at the assertion level, using inherent risk factors and a spectrum of inherent risk. It also adds a stand-back requirement for material items not identified as significant.
This workbook maps each significant class of transactions, account balance and disclosure to its relevant assertions, records the assessment and links to the planned response.
When to use it
- Audit planning, alongside the planning memo.
- Updated during fieldwork if evidence changes the assessment.
What’s inside
- Risk matrix: area, assertion, inherent risk factors, inherent risk, control risk, RMM
- Significant risk and fraud risk flags, with the presumed revenue fraud risk
- Planned response and working paper reference
- Stand-back check for material areas not assessed as significant
- Inherent risk factor and assertion reference sheet
Standard cited
This template follows AU-C 315 (SAS 145). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 315 explained.
Questions
What are the inherent risk factors in SAS 145?
Complexity, subjectivity, change, uncertainty, and susceptibility to misstatement due to management bias or other fraud risk factors.
What if I do not test controls?
If you do not plan to test the operating effectiveness of controls, SAS 145 has the assessment of the risk of material misstatement equal to the inherent risk assessment.
When did SAS 145 take effect?
For audits of financial statements for periods ending on or after December 15, 2023.
Related templates
- Audit Planning Memo (AU-C 300)
- Summary of Uncorrected Misstatements (AU-C 450)
- SOX Risk and Control Matrix (RCM)
Last updated 11/04/2026. All free templates.