The objective of an auditor in accordance with SA 315 is to identify and assess risks of material misstatement at financial statement level and…

For the purpose of identifying and assessing the risks of material misstatement, the auditor shall: (i) Identify risks throughout the process of obtaining an understanding of the entity and its environment, including relevant controls that relate to the risks, and by considering the classes of transactions, account balances, and disclosures in the financial statements. (ii) Assess the identified risks, and evaluate whether they relate more pervasively to the financial statements as a whole and potentially affect many assertions. (iii) Relate the identified risks to what can go wrong at the assertion level, taking account of relevant controls that the auditor intends to test and (iv) Consider the likelihood of misstatement, including the possibility of multiple misstatements, and whether the potential misstatement is of a magnitude that could result in a material misstatement.