Using Your Knowledge of the Relationships Among Acceptable Audit Risk

question 10

Essay

Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, tolerable misstatement, 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 tolerable misstatement. ________.

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Definitions:

Expansion Hub

A device that allows multiple peripherals to connect to a single port on a computer or other device, expanding its connectivity.

USB Ports

Universal Serial Bus ports, used for connecting various devices to a computer such as keyboards, mouse devices, printers, and external hard drives.

USB

Abbreviation for Universal Serial Bus, a standard technology for connecting peripherals to a computer, enabling communication and power supply.

Ethernet

A group of computer networking technologies frequently utilized in local area networks (LAN), metropolitan area networks (MAN), and wide area networks (WAN).