Question: Which is incorrect statement about audit risk? a . Audit assurance is the complement of acceptable audit risk. b . There is an inverse relationship
Which is incorrect statement about audit risk? a Audit assurance is the complement of acceptable audit risk. b There is an inverse relationship between acceptable audit risk and planned detection risk. c The risk of material misstatement refers to the combination of inherent risk and control risk.O d detection risk can only be determined after audit risk, inherent risk, and control risk aredetermined.Prior to beginning the fieldwork on a new audit engagement in which a CPA does not possess expertise in the industry in which the client operates, the CPA should a Obtain a knowledge of matters that relate to the nature of the entity's business.O b Reduce audit risk by lowering the preliminary levels of materiality.O c Design special substantive tests to compensate for the lack of industry expertise. d Engage financial experts familiar with the nature of the industry.
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