Insight Series from Reimagining Risk Assessment - Part IV

The focus of a reimagined risk assessment process is centered around risks of material misstatement to the financial statements (ROMMs). For some, starting the audit process with identification of ROMMs is not historically how they were trained and, therefore, can lead to some initial anxiety and resistance. In this report, building on our direct experiences and working with member firms on reimagining the risk assessment process, we provide suggestions to ease the transition to a ROMM based focused audit (as