What is an Entity Level risk?
As entity level risks are environmental-type risks that can affect multiple cycles and financial statements areas, risks recorded in an engagement file using one or more of the entity level categories will appear in all risk report (e.g. RRPT, risk report at the top of all Risk Response Programs, etc.)
The entity level risk categories in Audit System are:
- Executive Remuneration
- Fraud
- Accounting estimates – Impairment testing and assets values
- Accounting policy choices – Off-balance sheet arrangements
- Accounting policy choices – Revenue recognition
- Accounting policy choices – Expense deferral
- Accounting policy choices – Tax accounting
- Disclosures – Estimates and accounting policy judgements
- Disclosures – Impact of new revenue and financial instruments standards
- Entity Level IT – General controls
- Entity Level IT – Application controls
- Business
- Entity Level IT controls
- Litigation and claims
- Related parties
- Going concern
- Financial Report Risk
- Laws and Regulation
- Regulatory Risk
These categories are available for selection in the 'Select Financial Statement Areas' dialog when recording a new risk.