Which element should be included when outlining audit procedures to address identified risks?

When outlining audit procedures to address identified risks, it is essential to include the action as per ISA 500 procedure. ISA 500, which is part of the International Standards on Auditing, provides guidance on audit evidence and outlines the necessary procedures auditors should follow to collect sufficient and appropriate evidence to support their opinions. This guidance includes the need for auditors to evaluate the appropriateness of the audit evidence obtained and consider the effectiveness of their procedures in mitigating identified risks.

In this context, the procedures established under ISA 500 allow auditors to systematically address the risks highlighted during the audit planning phase. These procedures might involve various activities such as testing controls, obtaining confirmations, or performing analytical procedures. By including the actions specified in ISA 500, auditors can ensure they are adhering to best practices and maintaining compliance with professional standards.

Understanding and implementing these procedures helps auditors design effective responses to the assessed risks, thereby enhancing the overall quality of the audit. This focus on established procedures ensures a comprehensive approach to risk assessment and management throughout the audit process.