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Using Your Knowledge of the Relationships Among Acceptable Audit Risk

Question 97

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Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, tolerable error, and planned evidence, state whether planned evidence will increase or decrease due to a specified change in one factor, while the other factors remain unchanged.

Premises:
an increase in acceptable audit risk __________
a decrease in control risk __________
an increase in tolerable misstatement __________
an increased in planned detection risk __________
an increase in inherent risk __________
Responses:
increase
decrease

Correct Answer:

an increase in acceptable audit risk __________
a decrease in control risk __________
an increase in tolerable misstatement __________
an increased in planned detection risk __________
an increase in inherent risk __________
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