AS 2110 - Identifying and Assessing Risks of Material Misstatement

AS 2110, issued by the Public Company Accounting Oversight Board, provides guidance for auditors on how to identify and evaluate risks that could lead to material misstatements in financial statements. It outlines procedures for understanding the entity and its environment, assessing internal controls, and determining the nature, timing, and extent of substantive testing required to address those risks. The standard emphasizes a risk-based approach to planning and performing audits.