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 ago
Next > < Previous

Related 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
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT