Document ID: chunk:federal_register_of_legislation:F2021C01250:reg:27:p2
Version: federal_register_of_legislation:F2021C01250
Segment Type: reg
Provision Reference: reg 27 (pt 2/23)
Character Range: 12503–15796

ASA 330 incorporates subsequent amendments contained in another Auditing Standard made by the AUASB up to and including 5 November 2021 (see Compilation Details).

Auditing Standard ASA 330

The Auditor's Responses to Assessed Risks

Application

Aus 0.1 This Auditing Standard applies to:

(a) an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act 2001; and

(b) an audit of a financial report, or a complete set of financial statements, for any other purpose.

Aus 0.2 This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.

Operative Date

Aus 0.3 This Auditing Standard is operative for financial reporting periods commencing on or after 1 January 2010.  [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]

Introduction

Scope of this Auditing Standard

      1. This Auditing 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 ASA 315[1] in an audit of a financial report.

Effective Date

2.                   [Deleted by the AUASB.  Refer Aus 0.3]

Objective

3.                   The objective of the auditor is to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement, through designing and implementing appropriate responses to those risks.

Definitions

4.                   For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

(a)                Substantive procedure means an audit procedure designed to detect material misstatements at the assertion level.  Substantive procedures comprise:

             (i)                 Tests of details (of classes of transactions, account balances, and disclosures); and

             (ii)               Substantive analytical procedures.

(b)                Test of controls means an audit procedure designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.

Requirements

Overall Responses

5.                   The auditor shall design and implement overall responses to address the assessed risks of material misstatement at the financial report level. (Ref: Para. A1-A3)

Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level

6.                   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. (Ref: Para. A4-A8; A43-A54)

7.                   In designing the further audit procedures to be performed, the auditor shall:

(a)                Consider the reasons for the assessment given to the risk of material misstatement at the assertion level for each significant class of transactions, account balance, and disclosure, including:

(i)                 The likelihood and magnitude of misstatement due to the particular characteristics of the significant class of transactions, account balance, or disclosure (that