Question: Define inherent risk. Can the auditors reduce inherent risk by performing audit procedures?

Define inherent risk. Can the auditors reduce inherent risk by performing audit procedures?

Step by Step Solution

★★★★★

3.48 Rating (188 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Inherent risk refers to the possibility of a material missta... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

336-B-A-A-A-N (849).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

Jogging Jake runs along a train flatcar that moves at the velocities shown in positions A-D. From greatest to least, rank the velocity of Jake relative to a stationary observer on the ground. (Call...

Q:

Audit Procedures. Auditors use different types of audit procedures to gather the evidence necessary to conclude that the risk of material misstatement for each relevant assertion has been reduced to...

Q:

Audit standards distinguish auditors responsibility for planning procedures for detecting noncompliance with laws and regulations having a direct effect on financial statements versus planning...

Q:

Audit risk should be considered when planning and performing an audit of financial statements in accordance with generally accepted auditing standards. a. Define audit risk. b. Describe its...

Q:

Define inherent risk. Can the auditors reduce inherent risk by performing audit procedures? 2. What are the major purposes of obtaining representation letters from audit clients? 3. Simulation...

Q:

T pts A company has a product called Product X and is considering launching a new product called Product Y. If they launch Product Y, 10% of customers who currently buy product X are expected to stop...

Q:

Define inherent risk. Can the auditors reduce inherent risk by performing audit procedures?

Q:

Auditors often use analytical procedures as substantive procedures to reduce detection risk relating to specific financial statement assertions. Explain FOUR (4) factors that determine the extent of...

Q:

Can the auditors reduce inherent risk by performing audit procedures?

Q:

In December 1995, the flamboyant entrepreneur, Michael Mickey Monus, formerly president and chief operating officer (COO) of the deep-discount retail chain Phar-Mor, Inc., was sentenced to 19 years...

Q:

1. Manual or automated procedures that operate at a business process level and process transactions by individual applications are Known as 2. Once fraud is detected, the auditor should first a....

Q:

Jill Nicholas believes there must be a better aggregate plan. She has suggested a hybrid plan, using a permanent workforce of 195 employees and subcontracting as needed. Once again, Jill has...

Q:

Chymotrypsin, trypsin, and elastase are digestive enzymes called serine proteases. The serine proteases differ in substrate specificity: Chymotrypsin cleaves peptide bonds after aromatic or bulky...

Q:

Find the derivative of y = 1 / ( 1 + e ^ - x )

Q:

Frederickson Company obtains $40,000 in cash by signing a 9%, 6-month, $40,000 note payable to First Bank on July 1. Fredericksons fiscal year ends on September 30. What information should be...

Q:

The current price of a stock is $33, and the annual risk-free rate is 6%. A call option with a strike price of $32 and with 1 year until expiration has a current value of $6.56. What is the value of...

Q:

Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Total Asset Turnover Ratio as a Financial Analyst Massa Company, which has been operating for three years, provides...

Q:

Analyzing the Effects of Transactions in T-Accounts Lisa Frees and Amelia Ellinger had been operating a catering business for several years. In March 2011, the partners were planning to expand by...

Q:

Argentina is considering constructing a bridge across the Rio de la Plata to connect its northern coast to the southern coast of Uruguay. If this bridge is constructed, it will reduce the travel time...

Q:

Why is computing a projects effect on the firms earnings insufficient for capital budgeting?

Q:

Select the best answer for each of the following. Explain the reasons for your selection. a. In planning and performing an audit, auditors are concerned about risk factors for two distinct types of...

Q:

Auditors can access SEC filings of certain public companies from EDGAR (Electronic Data Gathering and Retrieval system), which has the Internet address presented below. In addition, the auditors may...

Q:

In planning the audit of CVG Services, Inc., the auditors identified a number of fraud risk factors. The auditors believe that these factors indicate that there is a moderately high risk that CVG's...

Q:

Q.No.2 (5 marks) Three independent projects, each of which requires a RS 5 million investment are being considered for investment purpose by Sona Tea Company. The cost of capital and estimated...

Q:

Recently, a nurse commented that when a patient calls the medical advice line claiming to have the flu, the chance that he or she truly has the flu (and not just a nasty cold) is only about 4%. Of...

Q:

A forward contract with a settlement date at time T is issued based on an underlying asset with a current market price of B. The annualised risk-free force of interest applying over the term of the...