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There are few changes to the syllabus. One of them is in C.PLANNING AND RISK ASSESSMENTS in paragraph 2b .
In december 2012 it was : Explain the risks of material misstatement in the FS.
In June ‘s syllabus is : Explain the risks of material misstatement in the FS and EXPLAIN THE AUDITOR’S RESPONSE TO EACH RISK.Does it refer to the auditor’s response to the control, inherent and detection risk?
And also Is it possible for you to tell me in what page of your new study notes can I find this change??Thank you for your consideration
Essentially that requirement was always there and all the syllabus change does is to make it explicit. The notes have therefore not changed.
All it’s getting at is if you identify, say, inventory as an inherent risk perhaps because it consists of small high value items, you have to respond to that by adjusting the audit work you do (for example, ensuring that you attend the stock-take and do lots of test counts). Similarly, if controls were poor you would respond by reducing the detection risk.
This is relevant to ISA 300 requirements, Planning an Audit of Financial Statements.
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