Page 453 - Auditing Standards

As of December 15, 2017

.35 If the auditor has not obtained sufficient appropriate audit evidence about a relevant assertion or has
substantial doubt about a relevant assertion, the auditor should perform procedures to obtain further audit

evidence to address the matter. If the auditor is unable to obtain sufficient appropriate audit evidence to have
a reasonable basis to conclude about whether the financial statements as a whole are free of material
misstatement, AS 3105 indicates that the auditor should express a qualified opinion or a disclaimer of

opinion. 21

.36 Evaluating the Appropriateness of Risk Assessments. As part of the evaluation of whether sufficient

appropriate audit evidence has been obtained, the auditor should evaluate whether the assessments of the
risks of material misstatement at the assertion level remain appropriate and whether the audit procedures
need to be modified or additional procedures need to be performed as a result of any changes in the risk
assessments. For example, the re-evaluation of the auditor's risk assessments could result in the

identification of relevant assertions or significant risks that were not identified previously and for which the
auditor should perform additional audit procedures.

Note: AS 2110 establishes requirements on revising the auditor's risk assessment. 22 AS 2301 discusses
the auditor's responsibilities regarding the assessment of control risk and evaluation of control deficiencies

in an audit of financial statements. 23

Evaluating the Results of the Audit of Internal Control Over Financial

Reporting

.37 AS 2201, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of

Financial Statements, indicates that the auditor should form an opinion on the effectiveness of internal control
over financial reporting by evaluating evidence obtained from all sources, including the auditor's testing of
controls, misstatements detected during the financial statement audit, and any identified control deficiencies.

AS 2201 describes the auditor's responsibilities regarding evaluating the results of the audit, including
evaluating the identified control deficiencies. 24

Appendix A - Definitions

.A1 For purposes of this standard, the terms listed below are defined as follows:

.A2 Misstatement - A misstatement, if material individually or in combination with other misstatements,
causes the financial statements not to be presented fairly in conformity with the applicable financial reporting

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