SA 330, “The Auditor’s Responses to Assessed Risks” requires the auditor to conclude whether sufficient appropriate audit evidence has been obtained. Whether sufficient appropriate audit evidence has been obtained to reduce audit risk to an acceptably low level, and thereby enable the auditor to draw reasonable conclusions on which to base the auditor’s opinion, is a matter of professional judgement. SA 200 contains discussion of such matters as the nature of audit procedures, the timeliness of financial reporting, and the balance between benefit and cost, which are relevant factors when the auditor exercises professional judgement regarding whether sufficient appropriate audit evidence has been obtained.
Audit evidence to draw reasonable conclusions on which to base the auditor's opinion is obtained by performing:
1 |
Risk assessment procedures; |
2 |
Further audit procedures |
a |
Test of controls |
b |
Substantive procedures |
i |
Test of Details |
ii |
Substantive analytical procedures |
a |
Test of details |
i |
Test of trasactions –vouching |
ii |
Test of balance -Verification |
b |
Analytical Procedure |
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