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Microlesson · 5-min read

Framework of Further Audit Procedures (SA 330)

## Further Audit Procedures — Overview

After completing Risk Assessment Procedures (RAP), the auditor designs and performs Further Audit Procedures. These fall into two branches:

BranchPurpose
(A) Test of Controls (TOC)Tests whether internal controls are operating effectively
(B) Substantive ProceduresDirectly detects material misstatements in assertions

### Risk-Based Approach

The auditor follows a Risk-Based Approach:

```

RAP Stage → Identify High Risk / ROMM → Design Further Audit Procedures

```

High assessed Risk of Material Misstatement (ROMM) drives the nature, timing, and extent of further procedures.

### Audit Procedures Available at RAP Stage

These are the tools the auditor can use:

ProcedureDescription
InquiryAsking relevant personnel
InspectionExamining records or documents
ObservationWatching a process being performed
Analytical ProceduresEvaluating plausibility of financial data
RecalculationChecking mathematical accuracy
ReperformanceIndependently re-executing a procedure
External ConfirmationObtaining representations from third parties

> SA 330 governs the auditor's responses to assessed risks — it prescribes how the auditor must link assessed risk to further procedures.

⚠️ Common exam mistakes

  • Treating RAP-stage procedures (inquiry, observation) as sufficient on their own — they only identify risk, not gather sufficient appropriate audit evidence (SAAE) at assertion level.
  • Confusing the two branches: TOC tests the operation of controls; substantive procedures test whether balances and transactions are free of misstatement.
  • Forgetting that the risk-based approach requires a direct link between assessed ROMM and the design of further procedures.
Bare-Act text Para 6 · SA 330 — The Auditor's Responses to Assessed Risks · click to expand
The auditor shall design and implement further audit procedures whose nature, timing and extent are based on and are responsive to the assessed risks of material misstatement at the assertion level.
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