If tests of controls induce the audit team to change the assessed level of control risk for
Question:
If tests of controls induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0 and audit risk (0.05) and inherent risk remain constant, the acceptable level of detection risk is most likely to
a. Change from 0.1 to 0.04.
b. Change from 0.2 to 0.3.
c. Change from 0.25 to 0.1.
d. Be unchanged.
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Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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