AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained and AS 2301 The Auditor's Responses to the Risks of Material Misstatement state that _______.
A)auditors are required to perform substantive procedures for all relevant assertions that have been identified during the report issuance phase
B)auditors are required to perform substantive procedures for all relevant assertions that have been identified during the risk assessment phase
C)the auditors must always confer with the prior auditor before issuance of any audit report
D)the accounting qualities of faithful representation and comparability are immaterial to the audit

Question

Quizplus · Accepted Answer

AU-C 330 and AS 2301 both state that auditors are required to perform substantive procedures for all relevant assertions that have been identified during the risk assessment phase. This means that the audit procedures performed should be directly related to the identified risks of material misstatement in the financial statements. The audit evidence obtained should also be evaluated to determine if it provides sufficient and appropriate support for the auditor's conclusions. Options A, C, and D are incorrect based on the information provided.