Canadian Auditing Standard (CAS) 315, Identifying and Assessing the Risks of Material Misstatement

Learn about changes to the auditor’s responsibilities related to revised CAS 315, Identifying and Assessing the Risks of Material Misstatement.

How it impacts you?

The audit risk model in revised CAS 315 has not changed. The standard has, however, been significantly revised, reorganized and enhanced to require a more robust risk identification and assessment in order to promote better responses to the identified risks. The revised standard introduces new concepts and definitions, enhancements and clarifications to help the auditor apply the audit risk model, and strengthened documentation requirements relating to the exercise of professional skepticism, among other things. For this reason, it is important that practitioners understand the changes to the standard and how these changes will impact their engagements.

When is CAS 315 effective?

This revised CAS is effective for audits of financial statements for periods beginning on or after December 15, 2021.

What are the key differences in revised CAS 315?

The IAASB has prepared an Introduction to ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement Fact Sheet which provides an overview of changes made to the standard, and the outcome the revised standard is seeking to achieve. Since there are no Canadian amendments, revised CAS 315 mirrors ISA 315 (Revised 2019).  

How do I learn more?

Attend an upcoming CPA Alberta virtual seminar

Audit Engagements – Overview of CAS 315 Revised Standard

Download additional resources and materials:

I have more questions, who do I contact?

Advisory and consultation services are provided to designated accountants, candidates, and the public on a broad range of topics such as independence, conflict of interest, office management, Continuing Professional Development, accounting and assurance questions, and many others. This service is confidential, free of charge and is intended to provide only informal feedback.

If you have an advisory or consultation question, email info@cpaalberta.ca or call 780.670.2428, or toll-free at 1.800.232.9406.

Share this page