Response ISA 330

Question 1

ISA 330

Answer 1

Responses to Assessed Risks (ISA 330)

Auditors respond to assessed risks at the financial statement and assertion levels.

Financial Statement Level Responses
1. Emphasizing professional skepticism to the audit team
2. Assigning experienced staff
3. Providing additional supervision
4. Using experts
5. Incorporating unpredictability in audit procedure selection
6. Changing the nature, timing, and extent of audit procedures

These responses are influenced by the auditor’s assessment of the control environment.

Assertion Level Responses
1. Further audit procedures (tests of controls and/or substantive procedures)

Auditor’s Requirements
1. Assess audit risks
2. Plan audit work to identify and correct material misstatements
3. Ensure financial statements present a “true and fair view”