Stacey,the Partner in Charge of the Audit of RIF Enterprises,sets

question 42

Essay

Stacey,the partner in charge of the audit of RIF Enterprises,sets the planned level of audit risk for the audit of accounts payable at.06.The risk of material misstatement is assessed at .65.What is the detection risk for this audit?

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Definitions:

Lease Rate

The cost of leasing or renting a particular asset, property, or equipment, usually expressed as a payment amount per time period.

Sale And Leaseback

A transaction where a company sells an asset and leases it back from the buyer, providing liquidity while retaining the asset's use.

Lessee

A lessee is a person or entity who rents land or property from a lessor under the terms of a lease agreement.

Lessor

The party in a lease agreement who owns the asset and grants its use to another party (the lessee) for a specified period in exchange for payment.