Question: when planning a financial statement audit, a cpa must understand audit risk and its components. The firm of Pack & Peck evaluates the risk of
when planning a financial statement audit, a cpa must understand audit risk and its components. The firm of Pack & Peck evaluates the risk of material misstatement rmm by disaggregating rmmm into its two compnents: inherant risk and control risk.
Required:
for ech illustration, select the component of audit risk that is most directly illustrated. The components of audit risk may by used once, more than once, or not at all.
a control risk
b detection risk
c inherent risk
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