The auditor should consider audit risk when planning and performing an audit of financial statements Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures The susceptibility of an assertion in an account or disclosure to a misstatement before consideration of any related controls Inherent risk The risk that a misstatement that could occur will not be prevented, or detected and corrected, on a timely basis by the entitys internal control Control risk The risk that the procedures performed by the auditor will not detect a misstatement that could be material Detection risk c Explain how these components are interrelated

The Answer is in the image, click to view ...

Question: The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures.

The susceptibility of an assertion in an account or disclosure to a misstatement before consideration of any related controls	Inherent risk
The risk that a misstatement that could occur will not be prevented, or detected and corrected, on a timely basis by the entitys internal control.	Control risk
The risk that the procedures performed by the auditor will not detect a misstatement that could be material.	Detection risk

c. Explain how these components are interrelated.

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!

The auditor should consider audit risk when planning and performing an examination of financial statements in accordance with generally accepted auditing standards. Audit risk should also be...

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of...

! Required information [ The following information applies to the questions displayed below. ] The auditor should consider audit risk when planning and performing an audit of financial statements....

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of...

he auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of...

Required information [The following information applies to the questions displayed below.] The auditor should consider audit risk when planning and performing an audit of financial statements. Audit...

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of...

LO 423 The auditor should consider audit risk when planning and perfor 4-1, 4-2, 4-3 examination of financial statements in accordance with generally a auditing standards. Audit risk should also be...

QUES'HON 3 {15 MARKS] 1. The auditor should consider audit risk and materiality when planning and performing an audit of nancial statements in accordance with approved auditing standards. Materialitv...

Let f (x1, x2) = cg(x1, x2) be a joint p.d.f. for (x1, x2). For each x2, let h2(x1) = g(x1, x2). That is, h2 is what we get by considering g(x1, x2) as a function of x1 for fixed x2. Show that there...

What is a book closing calendar? And what are the activities that occur differently between Month end close and Year end close? please write it in word document , or write it in clear way to be easy...

The clean price is the price without accrued interest added on . 0 0 : 2 3 : 5 2 True or False

Unsought products are Multiple Choice any products associated with impulse buys at the supermarket checkout counter products that were once very popular but that have become obsolete because they are...

2. Who should participate in the program? All employees? Selected employees?pg 87

2. In groups of four or five students, meet with one or two administrators and faculty members in your college or university and, based on this, write a two-page paper on the topic the faculty...

4. In groups of four or five students, interview a small business owner or an HR manager with the aim of writing a two-page paper addressing the topic steps our company is taking to reduce voluntary...