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book Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder cover

Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Edition 9ISBN: 978-0130459206
book Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder cover

Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Edition 9ISBN: 978-0130459206
Exercise 8
When planning a financial statement audit, a CPA must understand audit risk and its components. The firm of Pack Peck evaluates the risk of material misstatement (RMM) by disaggregating RMM into its two components: inherent risk and control risk.
Required:
For each illustration, select the component of audit risk that is most directly illustrated. The components of audit risk may be used once, more than once, or not at all.
Components of Audit Risk:
a. Control risk
b. Detection risk
c. Inherent risk
When planning a financial statement audit, a CPA must understand audit risk and its components. The firm of Pack Peck evaluates the risk of material misstatement (RMM) by disaggregating RMM into its two components: inherent risk and control risk. Required:  For each illustration, select the component of audit risk that is most directly illustrated. The components of audit risk may be used once, more than once, or not at all. Components of Audit Risk: a. Control risk b. Detection risk c. Inherent risk
Explanation
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Components of Audit Risk
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Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder
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