India Audit Lens
Document entity understanding, risk, materiality, and statutory rates
Complete SA 315 entity understanding and risk assessment, set SA 320 materiality, and verify the effective statutory-rate catalogue before designing or concluding audit procedures.
By India Audit Lens product team · Updated 2026-07-17
Complete entity understanding
Open Planning → Entity Understanding. On Select Entity Understanding Profile, choose the firm-approved profile and click Continue. Work through the profile's Industry/Environment, Operations, Accounting Policies, Objectives, Internal Controls and Fraud Risk sections (labels depend on the profile). For every question select Yes, No, or N/A and enter evidence-backed remarks. Click outside a remarks box to trigger its save, then verify progress. In Accounting Policies, select the significant policy profile/policies and parameters, then complete the assessment questions.
Changing the profile can reset saved questionnaire data. Export/preserve required evidence and confirm the reset before changing it.
Build and review the SA 315 risk matrix
Open Audit Planning → Risk Assessment. Click Initialize or Add Missing FSLIs to seed only absent line items. Review applicability for the client's industry and facts. Set Inherent Risk and Control Risk for each applicable FSLI; review the derived Detection Risk. Expand a line and select Key Assertions. Choose the Risk Classification (Significant, Normal or Low), enter the Risk Description and Planned Response (SA 330), then click Save. Review summary counts and all significant risks. If AI Risk Profiler is used, treat every populated rating/assertion/response as a draft; independently…
Do not toggle a line N/A merely to reduce work. Detection risk is derived and guides substantive testing; it is not a user-entered substitute for professional judgement.
Compute materiality
Open Audit Planning → Materiality → Compute Materiality. Review suggested benchmarks (Revenue, PBT, Total Assets, Net Assets or Equity) and their source amounts/ranges. Select the appropriate benchmark, or use manual computation when source data is unavailable. Set Overall Materiality %, Performance Materiality % of OM, and Trivial Threshold % of OM. Enter the SA 320 rationale. Click Save Computation. Verify Current Materiality and downstream engagement values.
If PBT or another benchmark is negative/unstable, consider a more stable benchmark and document why. When revising, update the rationale and save a new computation; confirm the former version is Superseded in History.
Add specific materiality
Open Specific Materiality and click Add Item. Choose a suggested sensitive item or Custom item. Enter an amount below overall materiality plus description/rationale. Click Save and review its percentage of OM.
Verify or override engagement statutory rates
Open Audit Planning → Statutory Rates. Review each rule's Effective value, Source (Engagement, Firm or Default), verification state and effective dates. Click History to inspect source/version/approval. For an authorised engagement-only exception, an eligible partner clicks Override. Enter Value, Effective from/to, Reason and authoritative Source/citation; click Propose. Complete the applicable approval flow and verify that the resolved Source becomes Engagement.
The resolver order is engagement override → firm value → platform default. An engagement override must not change the firm-wide value. Custom rules and maker-checker policy are managed at firm level, not in this screen.
Expected result
Entity understanding is complete, every applicable FSLI has an assertion-linked assessed risk and planned response, current/specific materiality is documented with history, and statutory impact calculations use a dated, sourced, approved value.
Risk Assessment empty state with controls to initialise standard financial-statement-line-item risks or use the AI risk profiler.
Verified empty state. The representative engagement has no risk assessments yet; initialise only after confirming the engagement scope. Identity, years, counts, and account controls are masked.