PA Has Set Audit Risk at 5% and Determined That

question 32

Multiple Choice

PA has set audit risk at 5% and determined that inherent risk and control risk is at 100%. What is the detection risk?

• A) 5%
• B) 50%
• C) 95%
• D) 20%

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Definitions:

Tender Offer

A proposal made by an investor or another company to purchase a substantial amount of a company's shares directly from its shareholders.

Corporate Raider

An investor who buys a large number of shares in a corporation with the aim to gain control of it and make changes to increase its value.