In practice, auditors rarely assign numerical probabilities to inherent risk, control risk or acceptable audit risk. It is more common to assess these risks as high, medium or low. For each of the four situations below, fill in the blanks for planned detection risk and the amount of evidence you would plan to gather ('planned evidence') using the terms high, medium or low.
Definitions:
Performance
The act of carrying out or accomplishing tasks, measured against preset known standards of accuracy, completeness, and speed.
Rewards
Benefits, compensation, or other forms of recognition provided to individuals or groups for their performance and achievements.
Reward Power
The ability of an individual to influence the actions of others by offering or withholding rewards.
Jay Conger
A management theorist known for his work on leadership, influence, and negotiation within organizational settings.
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