Explain the connection between business risk and Audit risk model (inherent risk x control risk x detection risk)

Q: Define the term Enterprise Risk Management.

A: Enterprise Risk Management (ERM) is a business plan designed to recognize, evaluate, and organize…

Q: Describe a situation in risk management that involves ethical aswell as financial issues.

A: Ethical issue: the risk that arrives due to not following the code of conduct as prescribed by the…

Q: During financial statement audit, auditors seek to restrict which type of risk?   Control risk,…

A: Discovery hazard is the opportunity that an inspector will neglect to discover material misquotes…

Q: How would you distinguish forensic accounting, fraud auditing, and investigative auditing from…

A: Auditing is the process of analyzing the financial statements, and look whether the financial…

Q: Issues that can be caused by the following risks: Execution risk Strategic risk Technology risk…

A: Operational risk management (ORM) is characterized as a continuous cyclic process that comprises…

Q: What is Competitive Advantage b. What is Competitive Disadvantage c. What is Risk Management and…

A: "Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: Which of the following benefits of an effective accounting information system provides safeguards…

A: Accounting information system: It is a process which collects data, processes the same into…

Q: Distinguish between the general audit objectives and management assertions. Why are the general…

A: Auditing: Auditing is the process by which assertions made by management about financial…

Q: Difference between business risk and audit risk?

A: Risk is the chances that actual will differ from expected results.

Q: Why do auditors use a business risk approach ?

A: The factors that prevent or hinder the organization to achieve its goal or objectives, are termed as…

Q: Which of the following is an element of the Oa. Risk assessment plans Ob. Managements' operating…

A: The right answer is b Management's operating styles

Q: Define enterprise risk management.

A: It is basically a strategy that helps businesses to find out the potential various type of risks…

Q: Discuss the weaknesses in COSO’s internal control framework that led to the development of the COSO…

A: Enterprise risk management is a formal program or frame work that is implemented to mitigate the…

Q: What is an example of audit procedure when performing an accounts payable risk assessment for…

A: Auditing of Accounts Payable Accounts Payable is considered to be one of the important part in the…

Q: What is meant by the nature of the company, and why is it important to inherent risk assessment?

A:

Q: Define auditing. How is auditing different from accounting?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Discuss and explain the sub-processes of risk management

A: Risk management refers to those processes and steps which a finance manager undertakes to reduce the…

Q: Define each of the following terms:b. Enterprise risk management

A: Definition of Enterprise Risk Management   Enterprise risk management (ERM) is a plan-based business…

Q: Briefly explain the threats to an external auditor’s independence with examples.

A: Auditor:Auditor can be defined as the individual who carry out the process of auditing in the…

Q: Explain

A: Audit is the process of examining and analyzing the financial documents relating to the company’s…

Q: Why do you think that inherent and control risk is responsible for the audited company(client) and…

A: Audit means checking, verifying and examining all the financial records and information to ensure…

Q: How do you measure risk in an audit engagement?

A: Review hazard appraisal can be our closest companion, especially in the event that we want…

Q: Explain what is meant by the term acceptable audit risk. Whatis its relevance to evidence…

A: Accepted Audit Risk:- When the auditor is willing to take risk of giving an unqualified opinion for…

Q: connection of audit quality on reducing business risk

A: An audit is a process of checking and verifying the books of account and financial information of…

Q: Discuss Theories related to auditors independence

A: An auditor is a person or a firm authorized by the respective institutes to review the various…

Q: Identify risks for accounting systems that rely heavily on IT functions.

A: Risk refers to the outcomes of uncertainties. It can be good if well planned and it can be worst…

Q: Having an audit performed on the company's financial statements BEST illustrates which of the…

A: An audit performed for ensuring the quality of financial information.

Q: An assurance service is defined as a service thata. Provides auditing services to nonfinancial…

A: Assurance service: It is aimed at improving the quality of information for the individual making…

Q: Why is identification of risks, through a listing of assets and their vulnerabilities, so important…

A: Answer: One can never underestimate the importance of risk management that he is engaged in a…

Q: Explain why auditing is important in lowering the risk associated with information.

A: Introduction: Auditing is the practice of reviewing a company's internal controls to determine its…

Q: Distinguish between business failure and audit risk. Why is businessfailure a concern to auditors?

A: Auditing is the investigation, inspection, or examination of the financial statements of an…

Q: What can be done by a business to mitigate: Execution risk Technology risk Reputation risk…

A: Risk management  Risk management is the identification, evaluation, and prioritization of risks…

Q: Define materiality risk. How do auditors quantify RMM in financial statements? Describe the RMM…

A: Introduction: The first three subparts will be solved for you since you asked a question with…

Q: Compare and discuss the impact of the business environment on the internal audit risk assessment

A: The process of risk assessment helps in identifying and analyzing risks so that the objectives of…

Q: Define business risk

A: A business risk is an inherent risk arising due to the economic activities performed by the…

Q: New technologies are used. This is an example of: * O Audit risk O Control risk Inherent risk…

A: Audit Risk: Audit risk is the risk that financial statements are materially misstated and the…

Q: What is business risk? and How does it affect audit risk?

A: Business Risk: Business risks are elements which have an adverse effect on the performance and…

Q: Why is identification of risks, by listing assets and their vulnerabilities, so important to the…

A: Risk management: Risk management is the process of recognizing risk, assessing its relative scale…

Q: Why risk management process is essential

A: Risk management:- Risk management is the method of planning, organizing, directing, and dominant the…

Q: Entity-level controls can have a pervasive effect on the entity's ability to meet the control…

A: Controls to monitor results of the operations is an entity level control. Controls to monitor the…

Q: Which of the following is not a principle relating to risk assessment?

A: Risk assessment: it is a process or a method to find and analyze the risk factors that could cause…

Q: What is the auditor’s strategy for detecting

A: Answers: Auditor and the risk of fraud: Auditor always be skeptical while auditing the financial as…