In this lesson, we are going to cover the following topics:

1. Identify overall Risk (High/Low/Medium)
2. Use of overall risk to compute performance materiality

Identify overall risk

1. Navigate to menu Lead Schedule and click on index G – risk assessment section.
2. Work on the schedule G-4, G-5, G-6,G-7, G-8 to evaluate risk level for internal control, fraud risk factor etc. (optional)
3. Identify overall classification of risk at schedule G-9, and select high/low/medium (compulsory)

Computation of performance materiality

1. Click on schedule G-3
2. Click create icon at initial planning materiality
3. Select materiality benchmark profit of the year as your materiality base
4. Scroll down the page and click on Submit button.