Using Your Knowledge of the Relationships Among Acceptable Audit Risk

question 55

Essay

Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, performance materiality, 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 increase in planned detection risk.________.
5.An increase in performance materiality.________.

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Definitions:

Superordinate Level

A high-level classification or grouping that is more abstract than its lower-level counterparts in hierarchical arrangements.

Nonanalytic Concept Formation

Cognitive processes that implicitly acquire knowledge of a complex structure during the memorization of examples.

Reber

Refers to psychologist Arthur Reber, known for his work on implicit learning and the cognitive unconscious, particularly how people can learn complex information without being aware of the learning process.

Semantic Priming

A phenomenon in which exposure to one word (e.g., nurse) facilitates the recognition of semantically related words (e.g., doctor).