Question
In: Accounting
Which component of audit risk can the auditor control? a.Control risk. b.Inherent risk. c.Detection risk. d....
Which component of audit risk can the auditor control?
a.Control risk.
b.Inherent risk.
c.Detection risk.
d. Financial risk.
Solutions
Expert Solution
Detection risk is the risk that auditor fails to detect material mistatements in financial statement
An auditor can control detection risk by applying audit procedures
So Answer is : Option C.Detection Risk
ekkarill92 answered 2 years agoRelated Solutions
Which one is of greater concern to the auditor: risk affecting audit effectiveness or risk affecting...
Which one is of greater concern to the auditor: risk
affecting audit effectiveness or risk affecting audit efficiency?
Explain.
Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial...
Audit risk is the risk that the auditor expresses an
inappropriate audit opinion when the financial
statements are materially misstated. The auditor considers audit
risk when planning and
performing an examination of financial statements in accordance
with auditing standards. In
connection with this, the auditor considers the relevant
assertion level because this directly
assists the auditor to plan the appropriate audit procedures for
those transactions, accounts or
disclosures. The auditor uses the audit risk model as a
framework for assessing...
Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial...
Audit risk is the risk that the auditor expresses an
inappropriate audit opinion when the financial
statements are materially misstated. The auditor considers audit
risk when planning and
performing an examination of financial statements in accordance
with auditing standards. In
connection with this, the auditor considers the relevant
assertion level because this directly
assists the auditor to plan the appropriate audit procedures for
those transactions, accounts or
disclosures. The auditor uses the audit risk model as a
framework for assessing...
1. Audit risk is the risk that an auditor expresses an inappropriate audit opinion when the...
1. Audit risk is the risk that an auditor expresses an
inappropriate audit opinion when the financial statements are
materially stated. Why is the concept of audit risk so important to
auditors and what can they do to reduce it to an acceptably low
level?
2. Gaining an understanding of a client includes auditors
learning how their clients measure their performance. How is this
information used by auditors in audit planning and what are
examples of non-financial performance measures commonly...
Audit Risk = (Inherent Risk) * (Control Risk) * (Detection Risk) We want audit risk to...
Audit Risk = (Inherent Risk) * (Control Risk) *
(Detection Risk)
We want audit risk to be no greater than
5%.
We assess Inherent Risk as 60% and Control Risk at
20%.
So Detection Risk must be no greater than
……?
Auditors report to the Audit Committee. What are the
qualifications to serve on the Audit Committee?
Audit risk is a function of inherent risk, control risk and detection risk. Explain Audit risk....
Audit risk is a function of inherent risk, control risk and
detection risk. Explain Audit risk. Describe the relationships
between all risks and their components?
Which is a primary limitation of the audit risk model? 1-Control risk must be adjusted by...
Which is a primary limitation of the audit risk model?
1-Control risk must be adjusted by the auditor, not by an
arbitrary estimation.
2-The audit technology achieves precision outside of a
mathematical model.
3-Components of audit risk are treated as independent variables
even though many interdependencies exist between them.
4-The audit risk model does not adequately consider external
forces on the client organization.
Which of the following statements is most correct concerning the
reason(s) that U.S. corporations desire and are...
Discuss the audit risk model: a. Show the audit risk equation b. Define each component on...
Discuss the audit risk model:
a. Show the audit risk equation
b. Define each component on the equation
c. Explain how the equation works, include a comment on the
controllability of each component
What are the various audit reports an auditor can issue? What are the situations in which...
What are the various audit reports an auditor can issue? What
are the situations in which the auditor should issue these
reports?
After obtaining an understanding of internal control and assessing control risk of an entity an auditor...
After obtaining an understanding of internal control and
assessing control risk of an entity an auditor decided to perform
tests of controls. The auditor most likely decided
that:
A The available evidence obtained through tests
of controls would not support an assessment of control risk as
high.
B It would be inefficient to perform tests of
controls given they would not result in reduced substantive
tests.
C The assessed level of inherent risk exceeded
the assessed level of control risk....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Dr C #1 An object with mass = 5 kg is oscillating on the end of...
- Calculate the value of a bond that matures in 13 years and has a $1,000 par...
- The documentary Gender Revolution implies that gender today—gender identities and categories—are vastly different today than they...
- 12. What is the payment in month 13 on a CAM loan for $250,000 with a...
- Which of the following is true of variable costing? It expenses administrative costs as costs of...
- Individual Age Gender (Male=1) Family Size Cigarettes/Day Alcohol/Day Total Claims 1 25 1 2 0 3...
- Festus and Fran have decided to buy a house. The purchase price is $175,000. They have...
ADVERTISEMENT