Divij M asked 2 years ago
Sir, I am not able to understand the line in the meaning of assessment of rmm at the financial level
” Risks of this nature are not necessarily risks identifiable with specific assertions at the class of transactions, account balances….Rather, they represent circumstances that may increase the risks of material misstatement at the assertion level”
Ravi Staff answered 2 years ago
For example
We doubt integrity of management or
knowledge of account head or
credibility of account software etc.
Because of above circumstances there will be financial statement level RMM but they don’t indicate which specific financial items will get affected, but these things will increase chances that assertion level risk such as valuation or completeness etc get misstated. so FST level risk increases assertion level risk