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 auditors _______.
A)are required to perform substantive procedures for all relevant assertions that have been identified after issuance of the audit opinion
B)are required to perform substantive procedures for all relevant assertions that have been identified during the risk assessment phase
C)are required to perform tests of controls for all relevant assertions that have been identified during the risk assessment phase
D)should notify the client immediately of a change in fee structure pertaining to the audit

Question

Quizplus · Accepted Answer

AU-C 330 and AS 2301 state that auditors are required to perform substantive procedures (such as tests of details or analytical procedures) for all relevant assertions that have been identified during the risk assessment phase. They are not required to perform substantive procedures for all relevant assertions that have been identified after issuance of the audit opinion, as it may not be necessary or efficient to do so. Testing of controls may also be necessary depending on the assessed risks, but it is not required for all relevant assertions identified during the risk assessment phase. The option D is not relevant to the question asked.