ISA 330 – The auditor response to the evaluated risks

Author:ec. Carmen MATARAGIU, ec. Anca Cristina PENTEK

JEL:

DOI:

Keywords:procedures, responsibility, significant misstatements, affirmations, testing

Abstract:
The reasonable assurance obtained by the auditor as a consequence of the degree of certainty which it obtained by means of audit procedures implies the responsibility of the auditor. The limitation of the risks regarding a possible liability of the auditor in the case of non-detection of material misstatements in the financial statements is correlated with the procedures the auditor applies in the evaluation of material misstatements risk.\r\n\r\nThe evaluation of risks made by the auditor is characterized by subjectivism which might lead to an insufficiently exact evaluation so as to identify all the material misstatement risks.\r\n\r\nThe existence of inherent limits at the internal control level increases the possibility that not all risks can be identified in the period before the audit plan is drafted.\r\n\r\nThe theme of the article mainly addresses two of the requests presented in ISA 330 “The auditor’s procedures as a response to the evaluated risks”, namely:\r\n-general responses\r\n-operating efficiency of internal controls \r\n\r\nThe following articles will analyze the basic procedures applied by the auditor as a response to the evaluated risks.

---