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 provide which of the following examples of responding to risk at the financial statement level?
A)Emphasize that audit team members should not attempt to maintain professional skepticism
B)Assign less experienced staff to areas of higher risk of material misstatement
C)Provide less supervision
D)Include more elements of unpredictability in the selection of audit procedures

Question

Quizplus · Accepted Answer

The AS 2301 states that the auditor should include more elements of unpredictability in the selection of audit procedures as a response to risk at the financial statement level. This means that the auditor should use a variety of audit procedures that are unexpected to the client and increase the likelihood of detecting material misstatements. Emphasizing that audit team members should not attempt to maintain professional skepticism (A), assigning less experienced staff to higher risk areas (B), and providing less supervision (C) are not appropriate responses to risk at the financial statement level.