ISA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement Fiona Campbell, ISA 315 Task Force Chair & Deputy Chair of the IAASB IAASB Meeting – New York, USA Agenda Item 2 September 20, 2019

ISA 315 (Revised) – Walkthrough of the Standard Par # Requirements 1 – 15 Scope, Key Concepts, Effective Date, Objective 16 – 24 Definitions, Risk Assessment Procedures, Understanding the System of Internal Control 28 – 43 Components of the System of Internal Control, Deficiencies 45 – 54 Identifying ROMM, Assessing IR & CR, Documentation Page 2

ISA 315 (Revised) – Walkthrough of the Standard Par # Application Materials A1 – A36 Essential AM to definitions through to Observation & Inspection as RA Procedures A37 – A47eb Info from Other Sources to Understanding the Entity and its Applicable Financial Reporting Framework A49 – A82 The Entity & Its Environment, to the Applicable Financial Reporting Framework A88a – A114b How IRFs affect Susceptibility to Misstatement, to Obtaining an Understanding of the Control Environment A117 – A177 Obtaining an Understanding of Risk Assessment Process, to Control Activities Page 3

ISA 315 (Revised) – Walkthrough of the Standard Par # Application Materials A177a – A220c Other controls the auditor considers appropriate, to Control Deficiencies A201 – A239a Identifying and Assessing ROMM, to Assessing Control Risk A239b – A246 Evaluation of Audit Evidence to Documentation Page 4

ISA 315 (Revised) – Walkthrough of the Standard Par # Appendices App 1 Appendix 1 – Considerations for Understanding the Entity & Its Business Model App 2 Appendix 2 – Understanding the Inherent Risk Factors App 3 Appendix 3 – Understanding the Entity’s System of Internal Control App 4 Appendix 4 – Considerations for Understanding an Entity’s Internal Audit Function App 5 App 6 Appendix 5 – Considerations for Understanding IT Appendix 6 – Considerations for Understanding General IT Controls Page 5

ISA 315 (Revised) ‒ Conforming Amendments 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements 330 The Auditor’s Responses to Assessed Risks 540 (Revised) Auditing Accounting Estimates and Related Disclosures Other Various – Supplement to Agenda Item 2-I – NO CHANGES Page 6