77%

of FRC Tier 2/3 audits had risk assessment findings in the last inspection cycle

ISA 315 (Revised) — Risk Assessment Inspection Readiness Diagnostic

12 deficiencies regulators flag most often. Score your file in under 7 minutes.

77% of Tier 2/3 audits had risk assessment findings in the last FRC inspection cycle. The FRC called this "unacceptable." Would yours survive?

What's inside

3-sheet Excel workbook with interactive self-assessment (dynamic readiness score 0–12), IT environment quick diagnostic, and detailed finding explanations with ISA paragraph references and regulator quotes.

1. Risk assessment not performed at assertion level (ISA 315.34)

The FRC found auditors identifying risks at the financial statement level only, without mapping them to specific assertions on specific account balances.

2. IT environment not assessed or documented (ISA 315.26)

PCAOB cited this in 43% of inspected files. The revised standard requires identification of IT applications, related IT risks, and ITGCs — even at entities with simple IT environments.

3. Spectrum of inherent risk not applied (ISA 315.A4)

Most files still use High/Medium/Low instead of the spectrum approach required by the 2019 revision. Regulators expect to see the five inherent risk factors (subjectivity, complexity, uncertainty, change, susceptibility to bias) evaluated for each significant risk.

Plus 9 more findings with ISA paragraph references, regulator quotes, and documentation guidance. All in a free Excel workbook.

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Based on FRC, AFM, PCAOB, and CPAB inspection findings. Built by a practicing auditor.

Based on FRC, AFM, PCAOB, and CPAB inspection reports (2022–2025). Built by a practicing auditor.

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