At its meeting on December 5-9, 2016, the IAASB considered recommendations from the ISA 315 (Revised) Task Force related to identification and assessment of inherent risks (including a spectrum of inherent risks and significant risks), understanding of internal control (including initial views on how the existing requirements are able to be applied to a wide range of circumstances) and other matters. The IAASB supported many of the recommendations from the ISA 315 (Revised) Task Force. In expressing its support, the Board requested that further clarity be provided on how certain recommendations would be operationalized. The IAASB also discussed the option to perform a separate or combined assessment of inherent risk and control risk is retained, whether similar requirements exist in the Public Company’s Accounting Oversight Board’s standards to what the ISA 315 (Revised) Task Force is recommending, and the merits of in introducing “susceptibility to fraud” as a fifth qualitative inherent risk factor and related to spectrum of inherent risks. The IAASB also concluded that it would not be appropriate to have defined categories in the standard, other than what exists today (i.e., significant risks and risks that are at an acceptably low level).

Review the summary and the Highlight Summary on the IAASB's Web site.