What is a requirement for changes in audit procedures based on risk?

The selection of the requirement for changes in audit procedures based on risk focuses specifically on the net change in risk assessment. This principle is central to the audit process, as it emphasizes that auditors must continuously evaluate the risk of material misstatement throughout the audit. When changes occur in the net risk assessment—whether due to a change in the client's circumstances, control environment, or other relevant factors—auditors are required to adapt their audit procedures accordingly.

This ensures that the audit remains responsive to new information and that the procedures undertaken are sufficient to address any identified risks. If, for example, an auditor deems that the risk of misstatement has increased due to emerging issues, such as fraud risk or significant changes in the client's operations, they must modify their approach to gain sufficient evidence and assurance.

While urgency, market conditions, and normal audit practices may influence certain aspects of audit planning and execution, they do not inherently dictate changes in audit procedures. It is the assessment of risk and how that assessment changes that drives the necessary adjustments in audit strategy and procedures.