TWSA330 The Auditor’s Responses to Assessed Risks 　　　　

Status

Revised by Auditing Standards Committee in Taiwan on 4 October, 2022

Summary

This Standard deals with the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with TWSA315 in an audit of financial statements.　

The auditor shall design and implement overall responses to address the assessed risks of material misstatement at the financial statement level.

The auditor shall design and perform further audit procedures whose nature, timing, and extent are based on and are responsive to the assessed risks of material misstatement at the assertion level.

The auditor shall design and perform tests of controls to obtain sufficient appropriate audit evidence as to the operating effectiveness of relevant controls if the auditor’s assessment of risks of material misstatement at the assertion level includes an expectation that the controls are operating effectively and substantive procedures alone cannot provide sufficient appropriate audit evidence at the assertion level.

Irrespective of the assessed risks of material misstatement, the auditor shall design and perform substantive procedures for each material class of transactions, account balance, and disclosure.　 　

The auditor shall perform audit procedures to evaluate whether the overall presentation of the financial statements, including the related disclosures, is in accordance with the applicable financial reporting framework.　 　

Based on the audit procedures performed and the audit evidence obtained, the auditor shall evaluate before the conclusion of the audit whether the assessments of the risks of material misstatement at the assertion level remain appropriate.

If the auditor has not obtained sufficient appropriate audit evidence as to a material financial statement assertion, the auditor shall attempt to obtain further audit evidence. If the auditor is unable to obtain sufficient appropriate audit evidence, the auditor shall express a qualified opinion or disclaim an opinion on the financial statements.

The auditor shall include the overall responses to address the assessed risks of material misstatement at the financial statement level, the nature, timing, and extent of the further audit procedures performed, and the results of the audit procedures in the audit documentation.

Effective date

This Standard is effective for audits of financial statement for periods ending on or after December 31, 2022.