Consider the audit risk model and its effect on the amount of evidence examined by the...

Consider the audit risk model and its effect on the amount of evidence examined by the auditor.
1. Describe each of the four risks in the model and indicate how it is related to the amount of evidence (directly or inversely)
2. Describe how that business risk maybe factored into acceptable audit risk.
3. How is risk of material misstatement calculated? Would the auditor rather see a higher or lower value?
4. Can the risks be calculated precisely? Why or why not?

Expert Solution

ekkarill92 answered 2 months ago

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