The objective of the auditor is to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement, through designing and implementing appropriate responses to those risks Overall Responses
Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level
Evaluating the Sufficiency and Appropriateness of Audit Evidence
Spread the Word!Are procedures designed to detect material misstatements in accounts?An audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise tests of details (of classes of transactions, account balances and disclosures) and substantive analytical procedures.
Are tests to detect material misstatements in the financial statements?(ii) Substantive procedures are aimed at detecting material misstatements at the assertion level. They include tests of details of transactions, balances, disclosures and substantive analytical procedures.
What is material misstatement at the assertion level?The risk of material misstatement on an assertion level is composed of an assessment of inherent risk and control risk – inherent risk being the auditor's statement regarding the client's susceptibility of an assertion to being materially misstated. This is before the consideration of the client's internal controls.
What is the auditor required to identify and assess the risks of material misstatement?In identifying and assessing risks of material misstatement, the auditor should: Identify risks of misstatement using information obtained from performing risk assessment procedures (as discussed in paragraphs . 04-. 58) and considering the characteristics of the accounts and disclosures in the financial statements.
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