Question: Audit Risk=(Inherent Risk) * (Control Risk) * (Detection Risk) We want audit risk to be no greater than 5%. We assess Inherent Risk as 60%

Audit Risk=(Inherent Risk) * (Control Risk) * (Detection Risk)

We want audit risk to be no greater than 5%.

We assess Inherent Risk as 60% and Control Risk at 20%.

So Detection Risk must be no greater than ......?

Auditors report to the Audit Committee.What are the qualifications to serve on the Audit Committee?

Auditing an AIS effectively requires that an auditor have some knowledge of computers and their accounting applications.However, it may not be feasible for every auditor to be a computer expert.Discuss the extent to which auditors should possess computer expertise to be effective auditors.

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