Using Your Knowledge of the Relationships Among Acceptable Audit Risk

question 54

Essay

Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, tolerable error and planned evidence, state the effect on planned evidence (increase or decrease) of changing each of the following factors, while the other factors remain unchanged.
1. An increase in acceptable audit risk. __________
2. An increase in inherent risk. __________
3. A decrease in control risk. __________
4. An increased in planned detection risk. __________
5. An increase in tolerable misstatement. __________

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Definitions:

Scribe

A person who writes or records speeches, proceedings, or other information.

Flip Chart

A pad of large paper sheets on a stand for displaying information in presentations, meetings, or classrooms.

Timekeeper

A person or tool responsible for tracking the passage of time, often used in meetings, workshops, or sports to ensure activities adhere to a predefined schedule.

Guidelines

A set of recommended practices, instructions, or rules that aim to streamline particular processes or standards.