Insight Series for Reimagining Risk Assessment: Identified Controls for Significant Risks - Part V

Statements on Auditing Standards (SAS) 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, made important changes to clarify the extent of the required auditor work effort regarding internal controls. These changes included important clarifications about when the auditor is required to evaluate whether the control is designed effectively to address the risk of material misstatement at the assertion level or effectively designed to support the operation of other controls and determine whether the control