Significant risks often relate to significant non- routine transactions or judgmental matters. Non-routine transactions are transactions that are…

As part of the risk assessment, the auditor shall determine whether any of the risks identified are, in the auditor's judgment, a significant risk. In exercising judgment as to which risks are significant risks, the auditor shall consider at least the following: Whether the risk is a risk of fraud;Whether the risk is related to recent significant economic, accounting, or other developments like changes in regulatory environment, etc., and, therefore, requires specific attention;The complexity of transactions;Whether the risk involves significant transactions with related parties;The degree of subjectivity in the measurement of financial information related to the risk, especially those measurements involving a wide range of measurement uncertainty; andWhether the risk involves significant transactions that are outside the normal course of business for the entity, or that otherwise appear to be unusual.