> For the complete documentation index, see [llms.txt](https://finspectors.gitbook.io/finspectors-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://finspectors.gitbook.io/finspectors-documentation/audit-modules-auditor-view/workpapers/plan/scoping.md). # Scoping Scoping helps auditors determine which FSLIs, assertions and non-FSLI procedures should be included in the audit based on risk, materiality, controls and professional judgment. *** ## **Overview** The Scoping module helps auditors decide **what should be included in the audit plan and how each scoped area should be addressed**. Scoping is performed across both: * **FSLIs** * **Non-FSLI procedures** At the FSLI level, each financial statement line item is broken down into its relevant assertions. Auditors can then assess risks, control reliance, response levels and supporting work before deciding whether a particular assertion should be scoped in. The page is organized into three main tabs: * **Summary** * **FSLI** * **Non-FSLI** *** ## **1. Summary** The **Summary** tab provides an overall view of the scoping decisions made across the engagement. It helps auditors quickly understand: * Which FSLIs are in scope * Which assertions have been scoped in * Which non-FSLI procedures have been selected * Progress of the scoping exercise * Areas that still require auditor input This acts as the consolidated view before the scoping assessment is submitted. *** ## **2. FSLI Scoping** The **FSLI** tab contains the financial statement line items included in the engagement. Each FSLI can be expanded to view the underlying assertions relevant to that account. For example, an FSLI may include assertions such as: * Existence & Occurrence * Completeness * Rights & Obligations * Accuracy * Valuation * Presentation & Disclosure The auditor evaluates each assertion independently before deciding whether it should be scoped into the audit. *** ### **How FSLI Scoping Works** For each assertion, the auditor reviews the potential risk and evaluates the factors that influence the audit response. The workflow broadly follows: **Assertion → Potential Risk → Risk Assessment → Control Consideration → Audit Response → Scope Decision** Fins AI can assist by generating potential risks and inherent risk factors, while the auditor reviews and finalizes the assessment using professional judgment. *** ## **FSLI Scoping Columns** | **Column** | **What it means** | | ----------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Assertion** | Shows the audit assertion being assessed for the selected FSLI, such as Completeness, Accuracy or Valuation. | | **Potential Risk** | Describes the potential risk of material misstatement associated with the assertion. Auditors can enter the risk manually or use Fins AI to generate a suggested risk. | | **Relevant** | Indicates whether the identified risk is relevant to the assertion and should be considered in the audit approach. | | **Inherent Risk Factors** | Captures the factors contributing to inherent risk, such as complexity, estimation uncertainty, changes, significance or susceptibility to fraud. Fins AI can assist in generating these factors. | | **Risk Classification** | Classifies the identified risk based on its significance. This helps distinguish normal risks from risks requiring greater audit attention. | | **Response Level** | Defines the level of audit response required based on the assessed risk. Higher-risk areas typically require more extensive procedures. | | **Inherent Risk** | Shows the assessed inherent risk level for the assertion, typically Low, Medium or High. | | **Control Risk** | Captures the auditor's assessment of control risk for the assertion. | | **Assessed ROM** | Represents the assessed Risk of Material Misstatement after considering inherent risk and the control environment. | | **Control Reliance Planned?** | Indicates whether the audit team plans to rely on the client's controls when designing the audit approach. | | **Client Controls** | Allows relevant client controls to be linked to the assertion where control reliance is being considered. | | **Response** | Records the auditor's planned response or conclusion for the identified risk and assertion. | | **Walkthrough** | Links the assertion to relevant process walkthroughs and control understanding performed during planning. | | **Assigned To** | Shows the engagement team member responsible for completing the scoping assessment or related procedure. | | **Tasks** | Displays tasks linked to the assertion. Auditors can create follow-up actions and assign them to team members. | | **Requests** | Displays client information requests linked to the assertion. Supporting documents or clarifications can be requested directly from the client. | | **Attachments** | Allows workpapers and supporting documents to be linked to the assertion from the File Manager or other permitted engagement sources. | | **Action** | Allows the auditor to **Scope in** the assertion when it should form part of the audit plan. | *** ## **Potential Risk** The **Potential Risk** column helps the auditor document what could go wrong for each assertion. Auditors can either: * Enter the potential risk manually * Click **Generate** to obtain a Fins AI suggestion The generated risk should always be reviewed and adjusted where required. *** ## **Inherent Risk Factors** Inherent risk factors help explain **why an assertion may carry a particular level of risk**. Factors may include: * Complexity * Subjectivity * Estimation uncertainty * Significant changes * Unusual transactions * Composition of the balance * Fraud susceptibility * Other engagement-specific considerations Auditors can use Fins AI to generate suggested risk factors and then review them before proceeding. *** ## **Risk Classification** Risk Classification indicates the significance of the identified risk. Depending on the assessment, a risk may be classified as: * **Not Significant** * **Significant** * **Fraud Significant** This classification influences the level and nature of audit response required. *** ## **Response Level** The Response Level indicates the extent of procedures expected to address the assessed risk. The selected response should reflect: * The significance of the risk * Inherent risk * Control reliance * Professional judgment This helps ensure that higher-risk assertions receive an appropriately stronger audit response. *** ## **Control Reliance** Where the audit team intends to rely on controls, the auditor can indicate **Control Reliance Planned** and link the relevant client controls. This helps connect: **Risk → Control → Audit Response** and provides a clear audit trail for how control reliance affects the planned approach. *** ## **Tasks, Requests and Attachments** Each assertion can have supporting activities linked directly to it. #### **Tasks** Create internal follow-up activities for members of the engagement team. #### **Requests** Raise client information requests for documents, explanations or supporting evidence. #### **Attachments** Link relevant workpapers or documents from: * The current engagement * File Manager * Other permitted engagements This keeps the supporting work connected directly to the relevant assertion. *** ## **Scoping an Assertion** Once the auditor has completed the assessment, click **Scope in** to include the assertion in the audit plan. Not every assertion needs to be scoped in. The decision should consider: * Assessed risk * Materiality * Nature of the account * Relevant controls * Professional judgment The count displayed beside each FSLI shows how many assertions have been scoped compared with the total assertions available. For example: **3/7** means three out of seven assertions have been scoped in. *** ## **FSLI-Level Scope** The toggle displayed against each FSLI controls whether the FSLI itself is included in the scoping exercise. When an FSLI is in scope, auditors can expand it and assess the relevant assertions individually. The **In Scope** counter at the top of the page shows the total number of FSLIs currently included. *** ## **3. Non-FSLI Scoping** The **Non-FSLI** tab contains audit areas and procedures that are not directly associated with a financial statement line item. These may include engagement-wide considerations or procedures such as: * Going concern * Related parties * Fraud considerations * Laws and regulations * Subsequent events * Other overall audit matters Auditors can review the available procedures and scope in those that are relevant to the engagement. This ensures planning covers both financial statement balances and broader engagement-level risks. *** ## **Review and Submit** Once FSLI and Non-FSLI scoping is complete: 1. Review the scoped FSLIs and assertions. 2. Confirm risk classifications and response levels. 3. Review control reliance and linked controls. 4. Ensure required tasks, requests and attachments are linked. 5. Review Non-FSLI procedures. 6. Click **Submit** to finalize the scoping assessment. Once submitted, the scoped areas drive the downstream audit execution workflow, including **sampling, workpapers and audit procedures**. {% embed url="" %}