If audit risk (AR) is 0.015, inherent risk (IR) is 0.50, control risk (CR) is 0.30, and
Question:
If audit risk (AR) is 0.015, inherent risk (IR) is 0.50, control risk (CR) is 0.30, and analytical procedures risk (APR) is 0.50, what risk of incorrect acceptance (RIA) is suggested by the expanded risk model?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
You can ask students to illustr...View the full answer
Answered By
Sagar Kumar
I am Mechanical Engineer with CGPA of 3.98 out of 4.00 from Pakistan. I went to Government Boys Degree College, Sehwan for high school studies.
I appeared in NUST Entrance Exam for admission in university and ranked #516. My mathematics are excellent and I have participated in many math competitions and also won many of them. Recently, I participated in International Youth Math Challenge and was awarded with Gold Honor. Now, I am also an ambassador at International Youth Math Challenge,
I have been teaching when I was in 9th class class year 2012. I have taught students from 6th class to university level.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
Question Posted:
Students also viewed these Business questions
-
Audit risks for particular accounts and disclosures can be conceptualized in this model: Audit risk (AR) 5 Inherent risk (IR) 3 Internal control risk (CR) 3 Detection risk (DR). Required: Use this...
-
Using the audit risk model, state the effect on control risk, inherent risk, acceptable audit risk, and planned evidence for each of the following independent events. In each of the events a to j,...
-
In Part I of the case, you performed preliminary analytical procedures for Pinnacle. The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence....
-
Let be twice-differentiable and one-to-one on an open interval I. Show that its inverse function g satisfies When is increasing and concave downward, what is the concavity of -1 = g? g"(x) =...
-
The following reaction occurs by a mechanism involving general-base catalysis: Propose a mechanism for this reaction. base + CH,CH20H CH2OH
-
Find the equation of the indicated curve, subject to the given conditions. Sketch each curve. Hyperbola: V(0, 13), C(0, 0), conj. axis of 24
-
Refer to the information in Problem 21-1B. Tohono Companys actual income statement for 2017 follows. Required 1. Prepare a flexible budget performance report for 2017. Analysis Component 2. Analyze...
-
A group of college students is planning a camping trip during the upcoming break. The group must hike several miles through the woods to get to the campsite, and anything that is needed on this trip...
-
What output will be produced by the following code segment? int divide (double a, double b}{ } return (a/b); int main(){ double x=1.0, y = 4.0; cout < < divide(x, y); return 0; }
-
A bank is planning its requirements for ATMs (automated teller machines) in a new branch.There are spaces for upto six ATMs ,not all of which have to be used.Three types can be purchased:general ATMs...
-
Is there any benefit to be gained from using the audit risk model to calculate risk of incorrect acceptance?
-
Why is the risk of incorrect acceptance considered more critical than the risk of incorrect rejection in connection with audit decisions about an account balance?
-
Based on the Durbin-Watson statistic, is there evidence of autocorrelation in these data? Use a linear trend model. Store, which has maintained monthly sales records for the past 48 months, with the...
-
Discuss and compare organization strategy and operations strategy and explain why it is important to link the two.
-
Describe a situation in which you could be a free rider. Then, try to come up with a policy or procedure that would remove this temptation to free ride.
-
Present and defend your own favored approach to solving market failure in the case of a firm polluting the surrounding wilderness areas.
-
What are the strengths and weaknesses of litigation and regulation as deterrents to environmental wrongdoing? Why do you suppose some politicians are outspoken against both litigation and regulations?
-
A Mexican travels to Brazil to buy a gemstone which costs 3,000 Real (Brazilian currency). The Brazilian company that sells the gemstone then deposits the 3,000 Real in its account in a Panama bank....
-
Refer to Exercise 4.19. In E 4.19 The U.S. Census Bureau publishes data on housing units in American Housing Survey for the United States. The following table provides a frequency distribution for...
-
Solve the relation Exz:Solve therelation ne %3D
-
Why the repairs and maintenance expense account should be audited at the same time as the fixed asset accounts?
-
Describe how each procedure may be used to gather evidence on fixed assets and which broad financial statement assertion(s) (existence, completeness, ownership [rights], valuation [allocation], and...
-
Listed below is a selection of items from the internal control questionnaire on payables shown in Appendix 12A. 1. Are invoices, receiving reports, and purchase orders reviewed by the cheque signer?...
-
Research the different processes involved during the planning phase of a project. Identify the tasks and techniques associated with each of these processes. Prepare diagram where you relate...
-
How do cultural norms and values intersect with social structure, influencing patterns of behavior, identity formation, and societal organization ?
-
We manufacture breakfast cereal at our factory in Toad Suck, AR. Our current selling price is $2.40 per box, F.O.B. our shipping dock (our customers pay shipping expenses). Our gross profit margin is...
Study smarter with the SolutionInn App