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:

Direct Exporting

Selling products directly to consumers or retailers in another country, without the use of an intermediary.

Overseas Marketing

The practice of promoting and selling products or services in foreign countries beyond the company's home market.

Revenue Tariff

A duty imposed on imported goods primarily to generate income for the government rather than to restrict imports or protect domestic industries.

Venetian Glass

A type of glass made in Venice, Italy, renowned for its craftsmanship, color, and intricate designs.