The auditors assessed risk of material misstatement at 0 50 and said they wanted to achieve a 0 05 risk of failing to express a correct opinion on financial statements that were materially misstated What detection risk do the auditors plan to use for planning the remainder of the audit work a 0 20 b 0 10 c 0 75 d 0 00

Question: The auditors assessed risk of material misstatement at 0.50 and said they wanted to achieve a 0.05 risk of failing to express a correct opinion

The auditors assessed risk of material misstatement at 0.50 and said they wanted to achieve a 0.05 risk of failing to express a correct opinion on that were materially misstated. What detection risk do the auditors plan to use for planning the remainder of the audit work?
a. 0.20.
b. 0.10.
c. 0.75.
d. 0.00.

Step by Step Solution

★★★★★

3.49 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Incorrect DR AR IR x CR 005050 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

332-B-A-A-A-N (1721).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

What are the components of the risk of material misstatement (RMM)? Audit risk?

Can auditors express an unmodified opinion on financial statements that are not presented on the basis of generally accepted accounting principles? Explain.

What do auditors achieve by assessing risk of material misstatement at the financial statement level?

CASE 13-9 ZOU's Fencing Controls Student Guide Objectives of the Case This case gives students an opportunity to (1) obtain an understanding of factors to consider when evaluating the design of a...

1. Accordance to the profession's ethical standards, an auditor would be considered independent in which of the following instances? a. The client owes the auditors fees for two consecutive annual...

pls high light the answer in red!!! again pls make sure have at least 90% correct, otherwise answer will be...

ACCT 612 FINAL EXAM SECTION 1: 2 POINTS EACH. PLEASE SELECT THE BEST ANSWER TO EACH OF THE FOLLOWING QUESTIONS. 1) Which of the following best describes the test data approach? A) Auditors process...

If possible pls help me with this via email as the answer should be limited to one individual per submission. again pls if possible thru email antonionlyfans6969 g mail.com Prepare a word doc., about...

MULTIPLE CHOICE QUESTIONS 1. Which of the following statements does not properly describe an element of the theoretical framework of auditing? a. An audit benefits to public. b. Auditors act on...

Highlight the right answers in colors ,make sure I,ll get more than 95% Question 1 of 45 All of the following statements are true, except: A tendency for fraud may exist when the granting of stock...

To estimate Missed Places, Inc.'s (MP) external financing needs, the CFO needs to figure out how much equity her firm will have at the end of next year. At the end of the most recent fiscal year,...

The Thompsons signed a retail installment contract with Lithia Dodge for the purchase of a new pickup truck. The interest rate was listed as 3.9 percent, and provided that the contract was not...

What is the general structure of adaptive forecasting systems?

9.2 Scheduling a Shop: Midwest Parts Supply (MPS) is a fabricator of small steel parts that are sold as components to manufacturers of electronic appliances and medical equipment. In the MPS...

Give an example of the use of attributes sampling, MUS, and variables sampling in the form of an audit conclusion.

Multiple Choice Questions The following questions relate to determining sample size in tests of details of balances. For each one, select the best response. a. Mr. Murray decides to use stratified...

Multiple Choice Questions The following apply to evaluating results of audit sampling for tests of details of balances. For each one, select the best response. a. While performing a substantive test...

Use the following data for problems 25 - 27 Paradise Real-estate developer is considering building a condominium project. Five different sizes are being considered. The probabilities reflect the...

Source: Naulor WW 29. The Empirical Rule The Stanford-Binet Intelligence Quotient (IQ) measures intelligence. IQ scores have a bell shaped distribution with a mean of 100 and a standard devin of 15....

Show that any one-asymmetric error correcting code of length n can have a maximum of 2^n/(1 +n/2) codewords.