Wiley Practitioner's Guide to GAAS 2013: Covering all SASs, SSAEs, SSARSs, and Interpretations

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.

FUNDAMENTAL REQUIREMENTS

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.

Overall Responses

The auditor should design and implement overall responses to address the assessed risks of material misstatement with the following actions:

1. Ensure that the knowledge, skill, and ability of engagement team members with significant engagement responsibilities should be commensurate with the assessed risks of material misstatement.

2. Provide the extent of supervision appropriate for the circumstances, including the assessed risks of material misstatement.

3. Incorporate ...