risk of material missttaemnt

As per our notes (https://opentuition.com/acca/aa/acca-audit-assurance-aa-notes page 53)

Risks must be assessed at two levels to provide a basis for designing further audit procedures:
(1) The financial statement level (i.e. relating to the financial statements AS A WHOLE, for example,
the risk of management override of internal control).
(2) The assertion level (i.e. relating to classes of transactions, account balances and disclosures).

These two levels demand different “auditor’s responses [to the risk of material misstatement]” as set out on page 59:

5.1. Financial statement level
Risks at the financial statement level are those that relate to the financial statements as a whole and potentially affect many assertions. For example, the risks arising from fraud or a deficient control environment or significant doubts about going concern. The auditor’s response to such risks may include:
? Assigning more experienced audit staff
? Designing audit procedures that are less predictable
? Exercising greater supervision over audit work.
5.2. Assertion level
At the assertion level, essentially any single figure which appears in the financial statements is making assertions. For example, it is saying something about its accuracy, its measurement, completeness and occurrence (of a transaction) or existence (of an asset or liability).
At the assertion level, the nature, timing and extent of audit procedures must be designed to respond to the assessed risks (ISA 330). For example, if you are worried about receivables valuation you have to do a lot more work verifying that receivables are recoverable. It may be possible to wait for several months after the year end to see which customers actually pay. Assertions are described in more detail in Chapter 10.