Using the audit risk model, calculate detection risk if the other risks are set at these levels.

Question:

a. Individual audit risk of 5 percent.

Inherent risk of 50 percent.

Control risk of 40 percent.

b. Individual audit risk of 5 percent.

Inherent risk of 70 percent.

Control risk of 20 percent.

Why might inherent risk be set at 70 percent rather than at 50 percent?

Why might control risk be set at 20 percent rather than at 40 percent?

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Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

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Question Posted: May 07, 2024 02:01 AM

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Using the audit risk model, calculate detection risk if the other risks are set at these levels.

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Auditing An Assertions Approach

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