Psa 200

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Auditing and Assurance Standards Council

Philippine Standard on Auditing 330 (Redrafted)

THE AUDITOR’S RESPONSES TO
ASSESSED RISKS

PSA 330 (Redrafted)
PHILIPPINE STANDARD ON AUDITING 330 (REDRAFTED)
THE AUDITOR’S RESPONSES TO ASSESSED RISKS
(Effective for audits of financial statements for periods
beginning on or after December 15, 2009)
CONTENTS
Paragraph
Introduction
Scope of this PSA…………………………………………………………….. Effective Date………………………………………………………………… Objective…………………………………………………………………….. Definitions…………………………………………………………………… Requirements
Overall Responses……………………………………………………………. Audit Procedures Responsive to the Assessed Risks of
Material Misstatement at the Assertion Level…………………………….. Adequacy of Presentation and Disclosure……………………………………. Evaluating the Sufficiency and Appropriateness of Audit Evidence………… Documentation………………………………………………………………..

1
2
3
4
5
6-24
25
26-28
29-31

Application and Other Explanatory Material
Overall Responses……………………………………………………………. A1-A3
Audit Procedures Responsive to the Assessed Risks of
Material Misstatement the Assertion Level………………………………. A4-A54 Adequacy of Presentation and Disclosure…………………………………… A55
Evaluating the Sufficiency and Appropriateness of Audit Evidence……….... A56-A58 Documentation……………………………………………………………….. A59
Acknowledgment

Philippine Standard on Auditing (PSA) 330 (Redrafted), “The Auditor’s Responses to Assessed Risks” should be read in the context of the “Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services,” which sets out the authority of PSAs.

2

PSA 330 (Redrafted)

Introduction
Scope of this PSA
1.

This Philippine Standard on Auditing (PSA) 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 PSA 315, “Identifying and Assessing Risks of Material Misstatement Through Understanding the Entity and Its Environment” in a financial statement audit.

Effective Date
2.

This PSA is effective for audits of financial statements for periods beginning on or after December 15, 2009.

Objective
3.

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

Definitions
4.

For purposes of the PSAs, the following terms have the meanings attributed below:
(a) Substantive procedure – 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 – 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 statement level. (Ref: Para. A1-A3)

3

PSA 330 (Redrafted)
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)

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 class of transactions, account balance, and disclosure, including:

(i)

The likelihood of material misstatement due to the particular characteristics of the relevant class of transactions, account balance, or disclosure (i.e.,...
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