Audit Procedures: Substantive Testing and Assertions

The auditor's responsibility to design and implement responses to risks of material misstatement identified in an audit of financial statements.

Designing and implementing responses at the financial statement level.

Design and perform further audit procedures based on assessed risks of material misstatement at the assertion level.

<p>Emphasizing professional skepticism, assigning experienced staff, providing more supervision, using experts, and incorporating unpredictability.</p> Signup and view all the answers

<p>By designing and implementing appropriate responses to those risks.</p> Signup and view all the answers

<p>To guide auditors in designing and implementing responses to assessed risks of material misstatement.</p> Signup and view all the answers

<p>The auditor’s assessment includes an expectation that controls are operating effectively OR Substantive procedures alone cannot provide sufficient audit evidence</p> Signup and view all the answers

<p>The purpose (test of controls or substantive procedure) and its type (inspection, observation, inquiry, etc.)</p> Signup and view all the answers

<p>Inquiry alone does not provide enough assurance, so other audit procedures are needed.</p> Signup and view all the answers

<p>Inspection or reperformance can provide more assurance since observation is only relevant at the point in time it is made.</p> Signup and view all the answers

<p>When the procedure is performed, or the period to which the audit evidence applies.</p> Signup and view all the answers

<p>The quantity to be performed, such as sample size or number of observations.</p> Signup and view all the answers

<p>Material misstatements at the assertion level.</p> Signup and view all the answers

<p>Because the auditor's assessment of risk may not identify all risks of material misstatement and there are limitations to internal control, including management override.</p> Signup and view all the answers

<p>Tests of details (of classes of transactions, account balances, and disclosures) and substantive analytical procedures.</p> Signup and view all the answers

<p>To prevent, detect, and correct material misstatements at the assertion level.</p> Signup and view all the answers

<p>The auditor's judgment may not identify all risks of material misstatement.</p> Signup and view all the answers

<p>Including management override.</p> Signup and view all the answers