Question: Using the audit risk model, holding all factors equal, what happens to detection risk if control risk goes down? Why?

Using the audit risk model, holding all factors equal, what happens to detection risk if control risk goes down? Why?

Step by Step Solution

★★★★★

3.42 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

If control risk goes down detection risk goes up This means ... View full answer

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

Document Format (1 attachment)

Word file Icon

1148-B-A-A-A-N(4704).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

Using the audit risk model, state the effect on control risk, inherent risk, acceptable audit risk, and planned evidence for each of the following independent events. In each of the events a to j,...

Q:

In evaluating the audit approach for McClain for the current year's audit, Sessions believed that a substantive approach was really only appropriate for the audits of small nonpublic companies. In...

Q:

Your audit firm uses the Audit Risk Model to plan detection risk and audit procedures for tests of details. The audit you are working on is a high profile client. Therefore, for risk assessment and...

Q:

Question 7 (3 points) Which of the following is TRUE about the audit risk model (holding all other components constant)? An increase in acceptable audit risk will result in a decrease in detection...

Q:

Using the audit risk model, compute the detection risk for the following values of audit risk, inherent risk, and control risk. Then answer the questions below. a. Which of the "points" yields the...

Q:

Using the audit risk model, identify the relationship between the following elements. For each of the items below, highlight whether the two elements have an inverse relationship, a direct...

Q:

Using the audit risk model, state the effect of the following scenarios on each of the four components of the model. That is , for each item below, state whether the item increases, decreases, has no...

Q:

1. Using the audit risk model, identify the relationship between the following elements. For each of the items below, highlight whether the two elements have an inverse relationship, a direct...

Q:

Using the audit risk model, identify the relationship between the following elements. For each of the items below, highlight whether the two elements have an inverse relationship, a direct...

Q:

Using the audit risk model, identify the relationship between the following elements. For each of the items below, highlight whether the two elements have an inverse relationship, a direct...

Q:

(b) The following equations describe an economy being measured in billions and I as a 5 percent interest rate. C=0.8(1-t)Y, t=0.25, 1=900-50i, =800, L=0.25Y-62.5i, M/P=500. (1) What is the equation...

Q:

At the beginning of year 1, P Ltd acquired S Ltd by issuing its own shares to shareholders of S Ltd who had an option of receiving either two shares from P Ltd for every one share held in S Ltd or $3...

Q:

Question 1 6 of 4 5 0 0 : 2 2 : 2 4 Which of the following statements is true regarding common size financial statements? A common size balance sheet is created by dividing all items by total assets....

Q:

Explain why the incentives of individuals and businesses are chiefly affected by changes in marginal tax rates that is, the percentage of the next income they earn that they must pay in taxes.

Q:

What is an independence threat analysis? When and why should it be completed?

Q:

State several factors that have affected the incidence of lawsuits against public accountants.

Q:

In what ways can an individual public accountant positively respond and reduce liability in auditing?

Q:

Division A manufactures electronic clrcult boards. The boards can be sold elther to Division B of the same company or to outside customers. Last year, the following actlvity occurred in Division A:...

Q:

Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 52,000 units of EX 300 and 11,700 units of TX500. The company's...

Q:

+ ID Page view A Read aloud Draw V The manager of Get-well Pharmacy has provided you with the following information on May 1, 2011 for your professional assistance. The following information was...