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Audit Plan Risk Assessment Template for England and Wales

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Key Requirements PROMPT example:

Audit Plan Risk Assessment

"I need an Audit Plan Risk Assessment for a medium-sized manufacturing company with international operations, focusing particularly on supply chain risks and foreign exchange exposure, to be completed before our fiscal year end in March 2025."

Document background
The Audit Plan Risk Assessment is a critical document required under English and Welsh law for planning and executing effective audits. It identifies and evaluates potential risks that could impact the accuracy of financial statements or operational effectiveness. This document is essential for establishing audit scope, determining resource allocation, and ensuring compliance with UK regulatory requirements and professional standards. The assessment typically includes risk evaluation matrices, control testing procedures, and specific focus areas based on the organization's industry and complexity.
Suggested Sections

1. Executive Summary: Overview of the audit plan and key risk areas identified

2. Scope and Objectives: Defined parameters of the audit and intended outcomes, including any limitations

3. Risk Assessment Methodology: Detailed explanation of the approach and frameworks used to identify and assess risks

4. Key Risk Areas: Comprehensive analysis of identified primary risk factors and their potential impact

5. Control Environment Assessment: Evaluation of existing internal controls and their effectiveness in mitigating risks

Optional Sections

1. Industry-Specific Risk Factors: Detailed analysis of risks specific to the entity's industry sector and regulatory environment

2. IT Systems Risk Assessment: Evaluation of technology-related risks and cybersecurity concerns

3. Fraud Risk Assessment: Specific analysis of fraud risks and vulnerability assessment

Suggested Schedules

1. Risk Assessment Matrix: Detailed risk scoring and prioritization matrix with impact and likelihood ratings

2. Control Testing Schedule: Planned testing procedures and timeline for identified controls

3. Previous Audit Findings: Summary of relevant prior audit issues, their current status, and impact on risk assessment

4. Resource Allocation Schedule: Breakdown of audit resources, timeframes, and responsibility assignments

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company law in the UK, particularly sections relating to audit requirements and directors' responsibilities. Key for establishing the basic legal framework for corporate audits.

Financial Services and Markets Act 2000 (FSMA): Fundamental legislation for financial services regulation in the UK, particularly relevant when auditing regulated financial entities.

Data Protection Act 2018 and UK GDPR: Legislative framework for handling personal and sensitive data during the audit process, ensuring compliance with data protection requirements.

ISA 315 (UK): International Standard on Auditing focusing on identifying and assessing risks of material misstatement through understanding the entity and its environment.

ISA 330 (UK): International Standard on Auditing dealing with the auditor's responses to assessed risks, providing guidance on audit procedures.

FRC Ethical Standard: Financial Reporting Council's standards establishing fundamental principles and requirements for auditor independence and ethics.

UK Corporate Governance Code: Sets out standards of good practice for listed companies on board composition, remuneration, shareholder engagement, and audit procedures.

FRC Guidance on Risk Management: Regulatory guidance providing framework for risk assessment and management in audit planning and execution.

FRC Guidance on Internal Control: Guidelines for evaluating and reporting on internal control systems within organizations during audit procedures.

ICAEW Technical Releases: Professional guidance and technical updates from the Institute of Chartered Accountants in England and Wales for audit practices.

Money Laundering Regulations 2017: Regulations requiring auditors to implement controls and procedures to prevent and detect money laundering activities.

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of crime, requiring auditors to report suspicious transactions.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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