An audit is planned so that the most of it focuses on the areas with the highest
Question:
An audit is planned so that the most of it focuses on the areas with the highest risk factors. The risk that auditors and their audit procedures will fail to detect a material error or misstatement is an
a. Inherent risk.
b. Control risk.
c. Detection risk.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
a Incorrect Inherent risk is the susceptibility to material ri...View the full answer
Answered By
Susan Juma
I'm available and reachable 24/7. I have high experience in helping students with their assignments, proposals, and dissertations. Most importantly, I'm a professional accountant and I can handle all kinds of accounting and finance problems.
4.40+
15+ Reviews
45+ Question Solved
Related Book For
Accounting Information Systems
ISBN: 9781292060521
13th Global Edition
Authors: Marshall B. Romney, Paul John Steinbart
Question Posted:
Students also viewed these Business questions
-
The auditors of Dunbar Electronics want to limit the risk of material misstatement in the valuation of inventories to 2 percent. They believe that there exists a 50 percent risk that a material...
-
Find the directional derivative of = xyz + 4xz at the point (1, -2, 1) in the direction of the vector - j - 2k.
-
Tests of controls are performed to determine whether: Controls are operating as designed. Material errors exist. Current ratios are within loan covenant requirements. Company net income is consistent...
-
For each of the statements, state the null and alternative hypotheses The average age of taxi drivers in New York City is 36.3years. The average IQ of disc jockeys is greater than 117.3. The average...
-
During 2010, its first year of operations, Myron Company purchased two available-for sale investments as follows: Assume that as of December 31, 2010, the Olson Products, Inc., stock had a market...
-
Angelina Tobin has employment income of $130,000 for 2022. She is single and lives alone. Angelinas employer withheld EI and CPP contributions of $4,453 (includes CPP enhanced contributions of $461)...
-
An electron and a proton are fired in opposite directions, and at the instant they are nearest each other, their separation distance is \(3.0 \mu \mathrm{m}\) (Figure P28.84). At that instant, the...
-
1. What evidence is there in this case that BP simply addresses fines as a cost of doing business? 2. BP chief executive Tony Hayward argued that changing the culture of a 100,000 person company...
-
a) Explain the following accounting concepts: i. Business entity Revenue realization ii. Accruals iii. iv. V. Substance over form Conservatism vi. Going concern (6 Marks) b) Classify the following...
-
Auditing is the systematic process of obtaining and evaluating evidence regarding assertions about economic actions and events in order to determine how well they correspond to the established...
-
Organizations also need to implement controls designed to minimize the risk of data transmission errors. When data is transmitted, the sending device can calculate a hash of the file, called a a....
-
The counting rate from a radioactive source is 8000 counts/s at time t = 0, and 10 min later the rate is 1000 counts/s. (a) What is the half-life? (b) What is the decay constant? (c) What is the...
-
In his book At the Hand of Man, Raymond Bonner argues that Africa should promote hunting, charging large fees for permits to kill animals (for example, $7,500 for a permit to shoot an elephant). a....
-
Scientists have identified a gene that accounts for 5 percent of thrill-seeking behavior. People with this gene are likely to take more risks such as smoking and bungee jumping in search of the next...
-
In the early 2000s carmakers began to design vehicles chassis, engines, and transmissions so that different models could be produced on the same assembly line. Within the first year of implementing...
-
The cost of setting up a steel mill is enormous. For example, a Gary, Indiana, hot-strip mill would cost an estimated $1.5 billion to build. Using this information and the cost concepts from the...
-
When economist Jacob Viner first developed the envelope relationship, he told his draftsman to make sure that all the marginal cost curves went through both (1) the minimum point of the short-run...
-
The diagram below shows the demand and supply for hamburgers on your college campus. a. Suppose your college announces a new plan to improve student life: Any time you buy a hamburger anywhere on...
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Why do you think Google was adamant about not wanting to supply information requested by the government concerning the Child...
-
How is a DBMS different from a database?
-
What are the differences between a logical view and a physical view of a database? Which would be more important for accountants who are involved in the design of a database that will store business...
-
What is three-tier architecture? What are some of its advantages over two-tier architecture?
-
Candace owned and lived in her home for 4 years, at which point she decided to move to another city. The housing market was slow, so she had to rent the house for a bit over a year before selling it....
-
Ed Fathly placed $10,000 in a savings account every year for 6 years. The account paid 6% interest compounded annually. How much money will be in the account at the end of 6 years?
-
Tom and Henry were close friends, so after college they purchased a home together as tenants in common. They bought the home for $20,000 and 30 years later sold it for $600,000. How much of the...
Study smarter with the SolutionInn App