Question: QUESTION 18 What is the directional relationship between the risk of material misstatement and both audit risk and detection risk? Audit risk = Inherent risk

QUESTION 18 What is the directional relationship between the risk of

QUESTION 18 What is the directional relationship between the risk of material misstatement and both audit risk and detection risk? Audit risk = Inherent risk x control risk minus detection risk. If inherent risk and control risk RMM is assessed as low, then the auditor will be unwilling to accept high detection risk if inherent risk and control RMM is assessed as high, then the auditor will be unwilling to accept high detection risk. Assessment of inherent risk and control risk RMM has no impact on Audit Risk. QUESTION 19 Which of the following is not one of the 3 major dimensions of materiality? The measure of materiality as determined by client management. The nature of the item under consideration. The dollar magnitude of the item. The particular perspective of the user of the financial statements

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