Professional Documents
Culture Documents
RESPONSES TO
ASSESSED RISKS
ISA 330
Auditor s Responsibility
ISA 330 deals with the
responsibilities faced by the auditor
in designing & implementing audit
procedures which specifically
respond to the RMM.
Substantive
Procedures
An audit procedure designed to detect
material misstatements at the assertion
level.
It comprises:
1. Test of Details (of classes of transactions,
account balances & disclosures);
2. Substantive Analytical Procedures
Tests of Controls
An audit procedure designed to evaluate
the operating effectiveness of controls in
preventing, or detecting and correcting,
material misstatements at the assertion
level.
Substantive Approach
Where the auditor considers a wholly
substantive approach appropriate,
the auditor shall be satisfied that
performing
only
substantive
procedures would reduce the RMM to
an acceptably low level.
The audit procedures must be
responsive to the assessed level of
RMM at both the assertion level and
at the financial statement level.
At the Assertion
Level
Slide Title
Extent TOC
Substantive Procedures
Are detailed procedures used by
auditors to collect audit evidence
that the assertions made by
management in the F/S (both figures
& disclosures) are reliable and are in
accordance with the applicable
financial reporting framework and
relevant legislation.
Timing of Tests
Interim Periods