> 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/training/training-english/module-8-risk-response-audit-risk-model.md).

# Module 8: Risk Response (Audit Risk Model)

### Creating a Risk Response

1. Navigate to the `Risk Response` page using the navigation menu.

   This page provides an overview of all financial statement line items, identified risks, and substantive procedures planned to address those risks. Financial statement line items that are not `In Scope` are shown as dimmed.

   Click financial statement line items, risks, or procedures to show the relationships between these objects.
2. Open the risk you created by clicking its title.
3. You will be taken to the risk detail screen, on the `Risk response` tab.

   For each financial statement line item and assertion, the audit plans are shown for each component.
4. No procedures have been planned yet, which means that the evidence is still insufficient.
5. Click the '+' add button on the right-hand side of the screen, next to `Procedures`, to plan substantive procedures for the audit plan.
6. Add several procedures and link them to your audit plan.

   Once the procedures have been linked, you will see them appear in the audit plan.
7. You have now planned your procedures and can write an explanation describing why, based on professional judgment, you confirm that the planned procedures provide sufficient assurance for the audit plan. Click on 'Evidence', and the Explanation field will open.
8. Add an explanation in the explanation field.
9. Save your explanation. Reload your screen, and your evidence on the audit plan is now sufficient.

### Specifying Planned Procedures

10. Click one of the procedures, such as `Capital expenditure(Sample)`, that is linked to your audit plan.
11. This opens the detail screen of the procedure. As you can see, the procedure is still in `Draft`, meaning it can still be further specified by adding instructions or by adding or removing activities.
    * Click the text below 'instructions' in the procedure step. This opens a text field. You can enter or adjust the instructions.
    * Delete an activity by clicking the delete button.
    * Hover your mouse between activities. The option `Add Activity` will appear.
    * Click `Add Activity` to add an activity.
    * Edit the title and instructions by clicking them, entering the desired text, and clicking the `✓` button.
12. As you can see, you cannot yet perform the activities. This is because you are still planning the procedures and the procedure is therefore still in `Draft`.

    Below, we explain how to move the procedure step out of `Draft`.

    > It is also possible to add an empty template to the audit plan and add activities as needed.

### Finalizing the Audit Plan Specification

13. Navigate back to the `audit plan` on your risk by clicking back in your browser, or by navigating to the risk again through the `Risk Response` page.
14. You can move all planned substantive procedures out of `Draft` at once by clicking `Status: In Progress` and then clicking `Close Specification`.
15. The audit plan on your risk is now `Ready for Review`.

    You can assign it to a colleague for review or, depending on your role, review it yourself.
16. Once the audit plan has been reviewed, the audit plan and the related procedures are no longer in `Draft`.

    The status is now changed to `Unassigned`, and procedures can no longer be added or removed.

    To make changes at a later stage, the audit plan can be moved back to `Draft` by clicking the `Status` bar and reopening the specification.

    Closing the audit plan helps prevent both `Over-Auditing` and `Under-Auditing`.

### Performing Procedures and Working with Audit Documentation

16. Click a procedure.
17. Assign the procedure to a colleague by clicking the assignment icon in the top-left corner.
18. Open one of the procedures within the audit plan.

    As you can see, you can now perform the activities.
19. Drag the Excel file `Working Paper Substantive Procedure` onto an activity.
20. The uploaded document is now part of your `Audit Documentation`.

    Edit the document by clicking the edit button. This opens the Microsoft environment. This does require that your Office environment uses the same e-mail address as the email address you are logged into Engyon with.

    Multiple colleagues can work in an audit documentation document at the same time, and all changes are automatically saved within the engagement file in Engyon. 
21. Click the create file button to create a blank file that becomes part of your `Audit Documentation`.

{% hint style="info" %}
The first time you open a Microsoft Office document from Engyon, the loading time will be slightly longer and you will need to grant permission for the OneDrive connection.
{% endhint %}