Probe Audit | 10.50G - Plan extent of risk assessment procedures

Published: 22/08/2025

The following describes the functionality and features included in Probe Audit Premium+.

Instructions:

10.50G - PLAN EXTENT OF RISK ASSESSMENT PROCEDURES

THIS DOCUMENT IS ONLY APPLICABLE TO GROUP AUDIT ENGAGEMENTS, BEING THE SEPARATE GROUP AUDIT ENGAGEMENT FILE.

Objective

The objective of this document is to determine the extent of the involvement of the component auditors in group engagements, which includes both Group Audit Single and Group Audit Multiple.

Document placement

Document 10.50G – Plan extent of risk assessment procedures can be found in the Pre-engagement planning folder in the Caseware document manager.

Document content

This document is designed to be a worksheet.
The user will have the opportunity to make the necessary selections to determine per COTABD, whether:

The COTABD is a “Consolidation balance only”;
The balance of the COTABD is based on accounting estimates or fair value estimates;
The group audit team plans to perform audit work centrally, considering group centralised activities and common controls applicable to the COTABD, if any; and
Component auditors will be involved in the risk assessment procedures, considering whether any audit work can be done centrally.

The responses to the questions in “Plan extent of risk assessment procedures” in 10.50 – Gathering information determines the inclusion of the applicable columns in 10.50G.

This document is divided into different bookmarks in the document map to assist you in completing the document. Bookmarks are included for each COTABD.

Layout

COLUMN	INPUT REQUIRED	OUTCOME
Description	The description of each line item automatically populates based on whether the COTABD has a balance in the current year or prior year.	This description assists the user in completing 10.50G.
Current year / Prior year	The balances automatically populate based on the imported trial balance.	These balances assist the user in completing 10.50G.
Consolidation balance only?	The user will select “Yes or “No” to indicate whether the relevant COTABDs are only initiated and accounted for through the consolidation process. The COTABDs of Related parties and Statement of cash flows will have “Yes” by default and cannot be changed.	When a COTABD is accounted for through the consolidation process only, audit work on that COTABD will be performed centrally. The risk assessment procedures and further audit work will therefore be performed by the group auditor. The user is therefore not required to complete the columns under “determine whether audit work can be done centrally” or “Plan to perform centrally”.
Based on accounting estimate?	Select “Yes” or “No”. This column will only be activated if the user selects “Yes” to the question in 10.50 – Gathering Information “Are any amounts in the financial statements based on accounting estimates or fair value measurements?”	When the user selects “Yes” for a COTABD the accounting estimate tick-box under “Types and balances” in 10.51 – Types and volumes of transactions will automatically be selected. This automatic selection is only applicable to group audit scenarios.
Similar activities and business lines across group?	Select “Yes” or “No”. This column will only be activated if the user selected “Yes” to the corresponding question at group level in 10.50 – Gathering information.	When the user selects “Yes”, the user will be prompted to link entities or business units in the next column.
Entities or business units similar activities and business lines relate to	This column is activated when the user indicates that there are similar activities or business lines across the group. Click “Add/edit” to link the relevant entities or business units listed in 11.20G – Identification of components to this column.	The information recorded in this column will be used to consider whether audit work can be performed centrally. This is determined in another column in this worksheet.
Group centralised activities?	Select “Yes” or “No”. This column will only be activated if the user selected “Yes” to the corresponding question at group level in 10.50 – Gathering information.	When the user selects “Yes”, the user will be prompted to link entities or business units in the next column. In 11.50 – Information system and control activities the user will also be prompted to consider the group centralised activities that are relevant to financial reporting. When centralised activities relate to a SCOTABD, the user will be prompted to document the understanding in the relevant SCOTABD section in 11.50 – Information system and control activities.
Entities or business units centralised activities relate to	This column is activated when the user indicated that the group centralise activities or processes related to financial reporting that are applicable to more than one entity or business unit within the group. Click “Add/edit” to link the relevant entities or business units listed in 11.20G – Identification of components to this column.	The information recorded in this column will be used to consider whether audit work can be performed centrally. This is determined in another column in this worksheet.
Common controls?	Select “Yes” or “No”. This column will only be activated if the user selected “Yes” to the corresponding question at group level in 10.50 – Gathering information.	When the user selects “Yes”, the user will be prompted to link entities or business units in the next column. In 11.50 – Information system and control activities the user will also be prompted to document the nature and extent of common controls. When common controls relate to a SCOTABD, the user will be prompted to document the understanding in the relevant SCOTABD section in 11.50 – Information system and control activities.
Entities or business units common controls relate to	This column is activated when the user indicated that the group designed controls that are intended to operate in a common manner across multiple entities or business units. Click “Add/edit” to link the relevant entities or business units listed in 11.20G – Identification of components to this column.	The information recorded in this column will be used to consider whether audit work can be performed centrally. This is determined in the next column in this worksheet.
Plan to perform centrally?	The user determines whether it is expected that audit work will be performed centrally, considering the information related to similar activities and business lines, group centralised activities and group common controls. Select “Yes” or “No”.	This determination informs the determination on 11.20G - Identification of components whether entities and business units can be considered together with others (as components) for planning and performing audit work. When it is expected that the audit work will be performed centrally, the group auditor will obtain the understanding of the COTABD, with or without the involvement of component auditors.
RAP performed by	The user selects whether risk assessment procedures will be performed by: The group auditor for consolidation only balances; The group auditor where audit work will be performed centrally; Both the component and group auditors when audit work will be performed centrally; or The component auditor only	Only the risk assessment procedures performed by the group auditor will be included in this group auditor engagement file. Risk assessment procedures performed by the component auditor will be recorded in a separate component auditor engagement file(s).
Comments	The field can be used to document considerations in determining the involvement of component auditors.	No direct impact on the rest of the engagement file. Information recorded here can be used to inform the relevant parties of their responsibilities for risk assessment procedures
Involvement of component auditors in RAP	This column will only reflect if “Extended procedures” were selected in 10.20 – Engagement evaluation. The field can be used to document more detail about the involvement of component auditors	No direct impact on the rest of the engagement file. The information recorded here can be used to inform the relevant parties of their responsibilities for risk assessment procedures.

The responses in the columns reflected in this table are critical in helping the user plan the extent of risk assessment procedures and further audit procedures.

Document outcomes

The responses per COTABD in this document affects the content in 11.50 – Information systems and control activities.

A section called ‘Centralised activities and common controls’ will be activated, when it is identified that some COTABDs have centralised activities and/or common controls.
The sections for SCOTABDs will also be activated when 10.50G – Plan extent of risk assessment procedures indicates that the group auditors will perform risk assessment procedures for those SCOTABDs.
When the risk assessment procedures for SCOTABDs are performed by the component auditor only, the sections for the SCOTABDs will not be activated in 11.50 – Information systems and control activities, as those system descriptions will be documented in the audit file of the component auditor only.