Question: For a given audit risk, what is the effect on substantive tests of determining that RMM is low ( Inherent risk is low & Control
For a given audit risk, what is the effect on substantive tests of determining that RMM is low Inherent risk is low & Control risk is low
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Tolerable misstatement decreases
Less rigorous procedure may be employed. EX:Test invoices, send negative confirmation, perform inquiries rather than observation or sending positive confirmations
Timing increases
Detection risk decreases
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