SA 315 – Identifying and Assessing the Risk of Material Misstatement through understanding the Entity and its Environment (Effective 01/04/2008)
The objective of the auditor is to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels, through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.