One form of the risk model is AAR AAR Acceptable Audit Risk IR = Inherent Risk...
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One form of the risk model is AAR AAR Acceptable Audit Risk IR = Inherent Risk IR x CR x PDR CR Control risk = PDR = Planned Detection Risk (note you are asked to evaluate planned evidence) I= Increase D = Decrease N = No Effect C = Cannot determine Company changed from privately held to publicly held. Slowing sales have increased the potential for inventory obsolescence. Indicate the effect on control risk: One form of the risk model is AAR AAR Acceptable Audit Risk IR = Inherent Risk IR x CR x PDR CR Control risk = PDR = Planned Detection Risk (note you are asked to evaluate planned evidence) I= Increase D = Decrease N = No Effect C = Cannot determine Company changed from privately held to publicly held. Slowing sales have increased the potential for inventory obsolescence. Indicate the effect on control risk:
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To evaluate the effect on control risk CR due to the company changing from privately held to publicly held and the potential for inventory obsolescenc... View the full answer
Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0134613116
14th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
Posted Date:
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