Question: Inherent risk, as defined by ERM, is assessed in relation to a. Business risk and detection risk b. Materiality and business risk c. Audit risk

Inherent risk, as defined by ERM, is assessed in relation to

a. Business risk and detection risk

b. Materiality and business risk

c. Audit risk and materiality

d. Impact and likelihood of occurrence

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related Accounting Questions!

Q:

I've provided below a list of ineffective communication styles that prevent us from resolving personal and political conflicts. Please review the descriptions given below before answering the...

Q:

Question 1 Which of the following represents the greatest risk? The director of IT (a key employee) resigned An IT hardware failure occurred The company?s database is corrupted The president of the...

Q:

You are a partner at ABC CPA, and you are auditing June 30, 2020 financial statements of AgriEq Inc. AgriEq is a manufacturer of agricultural equipment (tractors, large plows, etc.). This is the...

Q:

21. Which of the following communications between the auditor with final responsibility for an engagement (such as the engagement partner) and the audit engagement team regarding the susceptibility...

Q:

26. Which of the following is most accurate regarding an auditors required communications about fraud-related issues? a. Fraud having a material effect on the financial statements should be reported...

Q:

1. PPC provides standard audit programs and guidance used by many small and regional CPA firms. This guidance usually sets applied (individual account) materiality as 75% of overall planning...

Q:

(d) An assessment of the overall inherent risk including an explanation of the factors that lead to this assessment. (e) Calculation of Planning materiality in a $ amount. You must include a...

Q:

Tia is discussing with Rory and Leigh the risks they identified and how this information will be used in the audit risk model. Tia comments, The audit risk model provides us with a guide for our...

Q:

- A brief description of the client, its business processes, the accounting process, the key players (e.g., client personnel, customers, vendors), etc. - Planned audit risk (AR) for the audit. -...

Q:

for the company Bombardier, Assume the role of the entitys external auditor and prepare a report containing the following elements of the audit plan: 1. Perform an overall audit risk assessment in...

Q:

You are currently in the middle of the audit for FSL and have been accumulating sufficient appropriate audit evidence to conclude on the financial statements for the year ended. The following...

Q:

Suppose T > 0, and f: (-T,T) x R R is continuously differentiable. Sappoe o: (-T,T) x R satisfies o(0, r) = r and o(t, r) = f(s, o(t, a)). Show that in this scalar case o(t, z) = exp (L f(s, 6(s, 2))...

Q:

Identify two types of information in the client's minutes of the board of directors meetings that are likely to be relevant to the auditor. Explain why it is important to read the minutes early in...

Q:

How will a Strategic Activity Map be different for an established software platform company like Blackrock vs an emerging Fintech like Ondo Finance

Q:

Scrushy Company sells a product for $ 150 per unit. The variable cost is $ 110 per unit, and fixed costs are $ 200,000. Determine (a) The break-even point in sales units (b) The break-even point in...

Q:

Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $800,000 and with an expected useful life of four years and no residual value. For tax...

Q:

Differences between financial statement and taxable income were as follows: The cumulative temporary difference to date is $40 million (also the future taxable amount). The enacted tax rate is 40%....

Q:

VeriFone Systems is a provider of electronic card payment terminals, peripherals, network products, and software. In its 2015 annual report, the company reported deferred tax assets totaling about...

Q:

Data concerning Runnells Corporation's single product appear below: Per Unit Percent of Sales Selling price .............. $160...... 100% Variable expense......... $80 ....... 50% Contribution...

Q:

A pointer holds a memory address.

Q:

1. The purpose of this chapter is to describe the key principles, procedures and strategies of personal communication benchmarking, as understood in this context.

Q:

1. Set a personal goal for yourself in your work situation. Examine this goal in the light of the 10 factors to achieve goals.

Q:

4. Set up at least one work role that is important for you to master. Reflect on how you can use your time more efficiently, not necessarily spend more time, to perform better in this work role.