How Are Acceptable Audit Risk and Acceptable Detection Risk Related

question 29

Essay

How are acceptable audit risk and acceptable detection risk related?
Acceptable audit risk is the level of audit risk the auditor is willing to accept. Similarly, while detection risk is a risk the auditor wants to avoid, acceptable detection risk is the level of detection risk the auditor is willing to accept. How does the level of acceptable audit risk or the level of acceptable detection risk affect the audit? If, for example, the level of audit risk the auditor is willing to accept increases, this increase generally acts to decrease the nature, timing, and extent of testing the auditor performs. The same is true for an increase in acceptable detection risk.

Describe the purpose and process of a 3-way match in internal controls.

Understand the classification and management of inventory in QBO.

Grasp the concept and utility of Bundles in QBO.

Recognize the necessity and components of a good internal control system.

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Definitions:

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An early Mesoamerican city was a large, densely populated urban center in pre-Columbian Mesoamerica, characterized by monumental architecture, complex social structures, and advanced agricultural practices.

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