Acca aaa s21 Notes

Non-sampling risk
This risk arises from reasons other than sample size. For example, if 
the audit staff were inappropriately qualified, there is a higher risk 
that they might use inappropriate audit procedures, misinterpret 
evidence or fail to recognise an error.
 
Good quality control procedures should minimise non-sampling 
risk: adequate planning, assigning sufficiently skilled staff and the 
direction, supervision and review of their work.
September 2021 to June 2022 exams
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6. Auditor's responses to assess risks
You should recall from earlier studies that ROMM may exist at both the
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Financial statement level
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Assertion levels.
See Chapter 9 of our AA notes if you need to revise this.
6.1. Overall responses
Misstatements at the financial statement level are potentially more subtle and require a higher level 
of skill to detect. The auditor's response may include assigning more experienced staff, providing 
more supervision and emphasis on professional scepticism. Understanding of the control 
environment is particularly relevant here and will have a significant effect on audit strategy. For 
example:
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If effective, more audit procedures may be performed at an interim date as the auditor has more 
confidence in internal control and the reliability of audit evidence.
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If ineffective, more extensive substantive audit procedures should be performed at the year end. 
6.2. Assertion level
Assessed risks
 
of material misstatement at the