From the above case study, the risk assessment procedures may result in significant risks being identified by the auditor. ISA $315($revised $2019)$ defines significant risk as the identified risk of material misstatement for which the assessment of inherent risk is close to the upper end of the spectrum of inherent risk due to the combination of the likelihood and the magnitude of the potential misstatement $($or risks that are significant in accordance with other ISAs$).$ Comment on the following statement: $$The most effective test of controls is observation because the auditor himself is making the observation