Responding to Assessed Risks

Read time: ~5 minutes

Higher risk → more reliable procedures (nature), year-end (timing), larger samples (extent)
Overall responses: skepticism, experienced staff, supervision, unpredictability
Substantive procedures required for every material account/class/disclosure — controls reliance reduces but never eliminates them
Substantive = tests of details + substantive analytical procedures
Prior-period control evidence: refresh at least every 3rd year; significant-risk controls tested every year