The auditors of Dunbar Electronics want to limit the risk of material misstatement in the valuation of
Question:
a. Briefly discuss what is meant by audit risk, inherent risk, control risk, and the risk that analytical procedures might fail to detect a material misstatement.
b. Calculate the maximum allowable risk of incorrect acceptance for the substantive test of details.
c. What level of detection risk is implicit in this problem?
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Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
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