Responding to Assessed Risks
Adjusting Audit Procedures
After assessing risks, auditors modify their procedures to obtain sufficient appropriate audit evidence. Higher-risk areas require more persuasive evidence.
- Increase sample sizes.
- Perform procedures closer to year-end.
- Obtain external confirmations.
- Use experienced audit personnel.
- Perform additional substantive testing.
Note
Risk assessment is an ongoing process throughout the audit, not a one-time event.
Summary
Audit procedures become more rigorous as assessed risk increases.