Document ID: chunk:federal_register_of_legislation:F2019L00016:front:0:p4
Version: federal_register_of_legislation:F2019L00016
Segment Type: other
Provision Reference: 
Character Range: 9781–10801

a combined assessment of the "risks of material misstatement." However, ASA 54019 requires a separate assessment of inherent risk and control risk to provide a basis for designing and performing further audit procedures to respond to the assessed risks of material misstatement, including significant risks, for accounting estimates at the assertion level in accordance with ASA 330.20 In identifying and assessing risks of material misstatement for significant classes of transactions, account balances or disclosures other than accounting estimates, the auditor may make separate or combined assessments of inherent and control risk depending on preferred audit techniques or methodologies and practical considerations.  The assessment of the risks of material misstatement may be expressed in quantitative terms, such as in percentages, or in non‑quantitative terms.  In any case, the need for the auditor to make appropriate risk assessments is more important than the different approaches by which they may be made.