Proper risk assessment is crucial to a quality audit, but some firms are struggling with the related standards. In 2016, Peer Review Matters for Further Consideration showed a few common areas where firms are not complying with AU-C Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, and AU-C Section 330, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained.

 View this infographic to learn more about these violations and check out the free tools the AICPA has developed to support firms in their AU-C 315 and 330 compliance at aicpa.org/riskassessment.