Auditing: A Risk Based-Approach (MindTap Course List)
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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Chapter 8, Problem 21CYBK
To determine

Introduction: A Control deviation is used for evaluating the sample when auditor cannot perform appropriate alternative procedures for the items.

To Select: State whether the given condition is true or false.

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Which of the following statements is correct regarding detection risk and the audit risk model? OA. The two components of detection risk are test of details risk and inherent risk. B. Detection risk is equal to risk of material misstatement divided by audit risk. OC. There is an inverse relationship between the risk of material misstatement and detection risk. OD. There is a direct relationship between control risk and detection risk.
Which of the following risks does the auditor least control? a. inherent risk b. control risk c. detection risk d. all are equally controllable
Which of the following is a correct? Select one: a. Planned detection risk and inherent risk have an inverse relationship. b. All of the above are correct relationships. c. Acceptable audit risk and planned detection risk have an inverse relationship. d. Control risk and planned detection risk have a direct relationship.

Chapter 8 Solutions

Auditing: A Risk Based-Approach (MindTap Course List)

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