1. 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
Thursday, September 19, 2019

2. What has the Task Force done?
Definitions and Requirements
Application Material
Appendices
Conforming amendments will come later tonight

3. Conforming Amendment to ISA 200 A15(a)
Risk of Material Misstatement (Ref: Para. 13(n))
A15a. For the purposes of the ISAs, a risk of material misstatement exists when there is:
(a) A reasonable possibility of a misstatement occurring (i.e., its likelihood); and
(b) If it were to occur, have a reasonable possibility of being material (i.e., its magnitude).

4. Fatal Flaw Alternative
Risk of Material Misstatement (Ref: Para. 13(n))
A15a. For the purposes of the ISAs, a risk of material misstatement exists when:
(a) there is a reasonable possibility of a misstatement occurring (i.e., its likelihood) and
(b) that misstatement is material (i.e., its magnitude).

5. TF Needs Clear Direction – Reactions Please….
Options:
1. Leave the words as they have been drafted by the TF
2. Remove entirely (not the TF preferred option)

6. Next Steps Enjoy an early dinner
Full standard (excluding CA) no later than 8pm
Conforming Amendments – later tonight
Taskforce members and staff will be available during tomorrow’s (Friday) reading time