Describe the Only Component of the Audit Risk Model That

Question

Examlex · Accepted Answer

The Answer is DR is the only risk directly under the control of the auditor. If the auditor wants a low detection risk, the auditor must conduct extensive substantive tests of specific management assertions (tests of transactions, accounts, and presentation and disclosure). If the auditor decides that a higher level of DR is acceptable, then the auditor is willing to reach a conclusion about the fairness of financial statement based upon less substantive evidence, possibly substituting substantive analytical evidence for other substantive tests.

Describe the Only Component of the Audit Risk Model That

Essay

Correct Answer:
Verified

Describe the Only Component of the Audit Risk Model That

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified