> For the complete documentation index, see [llms.txt](https://engyon.gitbook.io/engyon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://engyon.gitbook.io/engyon/en/reference/risks-in-engyon.md).

# Risks in Engyon

On this screen, users can go through the risk assessment and risk approach of the audit and view links between line items, risks, and procedures. Within Engyon, the risk management process forms the core of a risk-based audit. This process is divided into two closely linked parts:

* the risk assessment, and
* the risk approach.

### Risk assessment

In the risk assessment, you map out which risks are relevant to the audit. This is done based on three elements:

{% stepper %}
{% step %}

#### Inherent risk factors

These are circumstances that naturally increase the risk of a misstatement, such as changes in the sector, complex regulations, weak authorization procedures for payments, or a deficient ethical corporate culture.
{% endstep %}

{% step %}

#### Risks

Based on the inherent risk factors and the internal control, risks are formulated, each provided with an assertion, likelihood and impact assessment, and a link to the relevant internal control measures.
{% endstep %}

{% step %}

#### Internal control measures

Here, the client's systems and processes are assessed. For each system, the relevant internal control measures are mapped out and it is determined for which audit units these ICMs apply.
{% endstep %}
{% endstepper %}

### Risk approach

The risk approach translates the identified risks into a concrete audit plan. In this overview, you see the connections between:

{% stepper %}
{% step %}

#### Financial statement line items

The financial items that are linked to the risks.
{% endstep %}

{% step %}

#### Risks

The previously established risks, now linked to specific line items and procedures.
{% endstep %}

{% step %}

#### Procedures

The audit procedures to be performed, each with a status.
{% endstep %}
{% endstepper %}

In this way, Engyon offers a complete overview of the risk-based approach: from identifying risks to performing the associated procedures.