Audit risk · ABC Textiles Pvt Ltd

Audit Risk Assessment

Materiality-aware risk register with a likelihood × impact matrix — statutory, fraud, valuation and disclosure risks mapped to ICAI assertions.

ABC TextilesPrivate LimitedFY 2025-26Jul 2026

Vyapars AI · model v2.4.1 · first run pending

Exception-drivenHuman-in-the-loop

Data → AI processing → Risk & exception → Evidence → CA review → Action → Audit trail

Exception-driven workflow

Jul 2026 close · ABC Textiles

Data5
Tally · bank · GSTN · 26AS
AI Processing2
Classify · match · scrutinise
Risk & Exception1
Anomalies surfaced
Evidence3
Source documents
CA Review1
Human in the loop
Action0
Approve · fix · escalate
Audit Trail0
Every decision logged

Counts are live for ABC Textiles. Every decision you make below flows into the audit trail and rolls up to the Command Center overview.

Materiality (turnover)

₹41L

1% of FY26 revenue

Risks identified

5 high · 7 medium

Assertions in scope

per ICAI guidance

AI coverage

91%

with source evidence

Controls verified

18 / 21

3 to follow up

Likelihood × impact · scores to 25

Risk matrix

5 high

Audit risk matrix
5	10	15	20	25
4	8	12	16	20
3	6	9	12	15
2	4	6	8	10
1	2	3	4	5

Impact on Y (5 = high), likelihood on X (5 = likely).

Materiality-aware · evidence-linked

Risk register

FY 2025-26

Risk	Category	Score	Mitigating controls
Cash payments to related party	Fraud / related party	18	Materiality check · RPT note
Contingent liabilities undisclosed	Disclosure	14	Schedule III note
Circular entry indicator (2 ledgers)	Financial statement	13	GL scrutiny · cash flow tie-out
Negative stock / goods-inward ahead of PO	Completeness	11	GRN–PO matching
Duplicate invoice raised on same POD	Fraud	10	3-way match
TDS PAN mismatch	Statutory	8	26AS reconciliation

Mapped to ICAI guidance & SA 600 series

Assertion coverage

22 assertions

Existence — assets physically verified
92%
Completeness — all material incomes recognised
88%
Ownership — title for fixed assets
79%
Valuation — inventory val method (cost vs NRV)
84%
Presentation — Schedule III format adherence
96%

Escalation ready

Partner notes

2 to escalate

Cash payments to a related party exceed materiality — RPT disclosure and scrutiny check required before sign-off.
A circulatory-entry indicator across two ledgers warrants a partner-review call with the client before closing.
Inventory valuation check (cost vs NRV) is awaiting stock-ageing data for 6 SKUs.

Human in the loop — nothing posts without an accountant

CA review queue

2 flagged

2 flagged · worst first

	Exception	Party / Ref	Amount	Date	AI confidence	Status	Actions
	highCash payments to related party above materiality Cash payments of ₹11.75L to a related party exceed the materiality threshold; related-party disclosure and scrutiny checks required.	Shared Holding Co	₹11.8 L	FY 2025-26	91%	open
	mediumContingent liability disclosure gap Bank guarantees of ₹8.5L Cr not disclosed as contingent liabilities in the prior-year financial statements.		₹85.0 L	FY 2025-26	88%	review

Exception

Party / Ref

Amount

Date

AI confidence

Status

Actions

highCash payments to related party above materiality

Cash payments of ₹11.75L to a related party exceed the materiality threshold; related-party disclosure and scrutiny checks required.

Shared Holding Co

₹11.8 L

FY 2025-26

91%

open

mediumContingent liability disclosure gap

Bank guarantees of ₹8.5L Cr not disclosed as contingent liabilities in the prior-year financial statements.

₹85.0 L

FY 2025-26

88%

review