Question: When planning a financial statement audit a CPA must understand

When planning a financial statement audit, a CPA must understand audit risk and its components. The firm of Pack & Peck evaluates the risk of material misstatement (RMM) by disaggregating RMM into its two components: inherent risk and control risk.

Required:
For each illustration, select the component of audit risk that is most directly illustrated. The components of audit risk may be used once, more than once, or not at all. Components of Audit Risk:
a. Control risk
b. Detection risk
c. Inherentrisk



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  • CreatedSeptember 22, 2014
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