Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 7, Problem 23RQSC
To determine
Introduction:Detection risk is the risk that the auditor shall not be able to identify the defect in a material statement. Audit risk and detection risk both are relevant to the Auditor; at the same time Inherent risk and Control Risk are beyond control of the Auditor.
To state: the case where the auditor will perform highest amount of detailed checking of system.
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Students have asked these similar questions
1. Explain the concepts of materiality and audit risk and the relationship between them?
2. Differentiate between the audit strategy and the audit plan.
3. Explain the term ‘analytical procedures’ and outline the different types of analytical procedures available to the auditor indicating situations in the audit when they can be used.
What are the components of Audit Risk? Use the Audit risk equation and briefly explain the components of audit risk.
What is the audit risk model? Explain the elements of the model
Chapter 7 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 7 - Prob. 1CYBKCh. 7 - Prob. 2CYBKCh. 7 - Prob. 3CYBKCh. 7 - Prob. 4CYBKCh. 7 - Prob. 5CYBKCh. 7 - Prob. 6CYBKCh. 7 - Prob. 7CYBKCh. 7 - Prob. 8CYBKCh. 7 - Prob. 9CYBKCh. 7 - Prob. 10CYBK
Ch. 7 - Prob. 11CYBKCh. 7 - Prob. 12CYBKCh. 7 - Prob. 1RQSCCh. 7 - Prob. 2RQSCCh. 7 - Prob. 3RQSCCh. 7 - Prob. 4RQSCCh. 7 - Prob. 7RQSCCh. 7 - Prob. 8RQSCCh. 7 - How does inherent risk relate to internal...Ch. 7 - Prob. 10RQSCCh. 7 - Prob. 11RQSCCh. 7 - Prob. 12RQSCCh. 7 - Prob. 13RQSCCh. 7 - Prob. 14RQSCCh. 7 - Prob. 15RQSCCh. 7 - Prob. 17RQSCCh. 7 - Prob. 18RQSCCh. 7 - Prob. 19RQSCCh. 7 - Prob. 22RQSCCh. 7 - Prob. 23RQSCCh. 7 - Prob. 24RQSCCh. 7 - Prob. 25RQSCCh. 7 - Prob. 26RQSCCh. 7 - Prob. 27RQSCCh. 7 - Prob. 29FF
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Similar questions
- Explain Audit assertions procedures and why these are important? Explain with the help of example.arrow_forwardDefine the audit risk model and explain each term in the model.Also describe which two factors of the model when combined reflect the risk of materialmisstatements.arrow_forwardDescribe the audit risk model and each of its components.arrow_forward
- Explain briefly about materiality and risk in auditing by your own wordsarrow_forwardAuditors need to identify audit risk in planning an audit engagement. In doing so, the audit risk model may be adopted. Require:Write the audit risk model in the two common ways it is often used by auditor. Each risk should be written in the model or named clearly for any abbreviations used.arrow_forward2. How do you measure risk in an audit engagement?arrow_forward
- How is the audit risk model used to plan the audit?arrow_forwardDiscuss how important is the risk assessment stage in audit engagements? Explain what audit procedures auditor perform in this stage and how the results of these procedures would affect the other stage of the audit?arrow_forwardEXPLAIN AND WHAT KIND OF RISK ASSESSMENTS FACING BY AUDITOER OR AUDITING?arrow_forward
- Discuss briefly: - The implementation of the overall audit strategy.arrow_forwardExplain the Diagram provided below base on your understanding of the concepts of Auditing.arrow_forwardThe auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelatedarrow_forward
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