Auditing and Assurance Standards and Guidance

Auditing Standards (Ireland)

FRC ISAs (UK and Ireland) applicable for periods beginning on or after 15 December 2010 but before 17 June 2016

ISA (UK and Ireland) 315 Identifying and assessing the risk of material misstatement through understanding the entity and its environment

ISA (UK and Ireland) 315 applicable for periods ending on or after 15 December 2010

Application and Other Explanatory Material

The Required Understanding of the Entity and Its Environment, Including the Entity's Internal Control

The Entity's Internal Control (Ref: Para. 12 )

Components of Internal Control— The Entity's Risk Assessment Process (Ref: Para. 15 )

Considerations Specific to Smaller Entities (Ref: Para. 17 )

A80.

There is unlikely to be an established risk assessment process in a small entity. In such cases, it is likely that management will identify risks through direct personal involvement in the business. Irrespective of the circumstances, however, inquiry about identified risks and how they are addressed by management is still necessary.