Risk Assessment

Implementation support for ISA (NZ) 315 (Revised 2019)

ISA (NZ) 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment was issued in April 2020 and it is applicable for audits of financial statements for periods beginning on or after 15 December 2021.

This standard has been significantly revised to require a more robust approach to risk identification and assessment, to promote better responses to identified risks. The Financial Markets Authority has continued to highlight the importance of understanding an entity and its environment, and has identified a focus on proper risk identification as part of the auditor regulation and oversight plan.

This page provides:

  • A Factsheet providing an overview of what has changed
  • IAASB and CPA Canada Support Materials
  • Scalability considerations for audits of less complex entities
  • First time implementation guides to assist in adoption of the revised standard
  • Frequently asked questions.

 IAASB Factsheet

Factsheet with more information on ISA 315 (Revised 2019)


IAASB Support Materials

Using automated tools and techniques when identifying risk of material misstatements.

The Risk Identification and Assessment Process: Tips on Implementing ISA 315 (Revised 2019)

IAASB Implementation Tool


CPA Canada Revised CAS 315 Implementation Tool for auditors

This tool focuses on selected new requirements and emphasises the scalability of the standard with a focus on less complex entities.


AUASB Scalability considerations for audits of less complex entities

This document provides a reference to support auditors in applying the revised version of ISA 315 on an LCE audit. Have a look here. 


The IAASB’s first time implementation guide


Frequently asked questions (FAQs)

Click here to access FAQs on the revised standard released by the Australian Auditing and Assurance Standards Board.