Audit Risk Assessment Tool-Step 1: Obtain an Understanding of Your Client and Its Environment ii. the likely magnitude of the potential misstatement, including the possibility that the risk may give rise to multiple misstatements. iii. the likelihood of the misstatement occurring. f. Document responses to risks identified, including responses to significant risks that require special audit consideration. Use the risk assessment worksheet to document (1) all risks at the assertion level, including significant risks, and (2) related responses to all risks, including special considerations for significant risks identified. g. Additional Comments: Add more documentation below, if necessary, to explain your rationale of why a risk was or was not identified