IRAM – Inherent Risk assessment worksheet.
The IRAM worksheet provides the functionality for auditors to analyze and document their understanding and considerations of inherent risk factors as part of the risk assessment process. This worksheet allows auditors to assess the overall inherent risk based on various factors and compare it with the inherent risk assessment recorded in the FSA as a form of validation check.
- Adding an IRAM document in the Engagement file:
The IRAM Master Document is located in the Master Documents folder in the Document Manager. Users can use the Copy function to create copies of the IRAM document and rename the document as per the financial area it relates to.
The name of the new IRAM documents can be altered within the Properties of the document.
There are two ways to complete an IRAM worksheet:
- Linking an IRAM document to the FSA.
The IRAM document needs to be linked to the FSA in order to bring in the balance and risk assessment of the financial area into the IRAM document. In order to link the IRAM document to the FSA, please follow these steps:
1. In the FSA document, navigate to the account which needs to be linked to the IRAM document.
2. In the W/P ref column, right click and select Insert New Reference.
3. In the Annotation dialog box, click on New Reference and select the IRAM document and click OK.
- Filling out the IRAM worksheet manually
This step is more appropriate for the items which are not included in the FSA (for example Provisions). Create a blank IRAM worksheet, and manually type in the Audit area name, Balance and Overall materiality. The green fields in the IRAM document are input cells, which allow users to type in data if required.
Adding additional inherent risk factors in an IRAM document
By default, the IRAM document has a list of three pre-generated inherent risk factors. However, if users wish to add additional risk factors, they can do so by expanding the Settings within the document and increasing the number of risk factors.
Performing a validation check in the IRAM worksheet
The validation check table in the IRAM document allows auditors to compare the Overall inherent risk assessment recorded in the worksheet with the inherent risk assessment in the FSA. If the risk assessment recorded in the FSA and the IRAM document is not the same, a yellow notice icon will appear, prompting the user that the overall inherent risk rating does not match.
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