PCAOB 13: The Auditor’s Responses to the Risks of Material Misstatement1
EFFECTIVE DATE AND APPLICABILITY
|Effective Date||This standard currently is effective.|
|Applicability||All audit planning.|
DEFINITIONS OF TERMS
Dual-purpose test. A substantive test of a transaction that is performed concurrently with a test of a control relevant to that transaction.
Professional skepticism. An attitude that includes a questioning mind and a critical assessment of the appropriateness and sufficiency of audit evidence.
OBJECTIVES OF PCAOB STANDARD 13
PCAOB Auditing Standard 13 sets the objective of addressing the risks of material misstatement through appropriate overall audit responses and audit procedures.
Responding to the Risks of Material Misstatement
The auditor must design and implement audit responses addressing the risks of material misstatement that are identified and assessed in accordance with Auditing Standard 12, Identifying and Assessing Risks of Material Misstatement.
The auditor should design and implement overall responses to address the assessed risks of material misstatement with the following actions: