The auditors assessed a combined inherent risk and control risk at 0.67 and said they wanted to
Question:
The auditors assessed a combined inherent risk and control risk at 0.67 and said they wanted to achieve a 0.15 risk of failing to detect misstatements in an account with a material balance. What audit risk are auditors planning to accept for this audit?
a. 0.20
b. 0.10
c. 0.75
d. 0.05
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
Answered By
Jayshree Rathi
Hello Students!
This is Jayshree Rathi. I work on a number of renowned student-centric channels such as Chegg, coursehero, as a certified private tutor.
If you are looking for relevant and original content to complete your assignments, essays, and homework, then contact me and within the promised time, I will deliver you your personalized academic work and help you score the best.
4.80+
1+ Reviews
10+ Question Solved
Related Book For
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
Question Posted:
Students also viewed these Business questions
-
Multiple Choice Questions The following questions concern audit risk. Choose the best response. a. Some account balances, such as those for pensions and leases, are the result of complex...
-
Distinguish between inherent risk and control risk. How do internal controls affect inherent risk and control risk, if at all? What is the role of detection risk?
-
The following are items on the inherent risk and control risk questionnaires contained in Exhibits. Categorize each item as belonging on (a) the inherent risk analysis questionnaire or the (b)...
-
12. Assume that the government has placed a regulation on the emission from diesel that will increase the cost of diesel. Graphically and verbally describe the impacts of this regulation on the...
-
Let A be a 4 4 real symmetric matrix with eigenvalues 1 = 1, 2 = 3 = 4 = 0 (a) Explain why the multiple eigenvalue = 0 must have three linearly independent eigenvectors x2, x3, x4. (b) Let x1 be an...
-
Kolton Company purchased items of inventory as follows: Dec. 2 50 units @ $20 Dec. 12 12 units @ $21 Kolton sold 15 units on December 20. Determine the cost of goods sold for the month under the LIFO...
-
Museum management. Refer to the Museum Management and Curatorship (June 2010) worldwide survey of 30 leading museums of contemporary art, Exercise 2.14 (p. 68). Recall that each museum manager was...
-
Usury laws place a ceiling on interest rates that lenders such as banks can charge borrowers. Why would we expect low-income households in states with usury laws to have significantly lower levels of...
-
To answer this question, please start by builiding and calibrating a 1 0 - period Black - Derman - Toy model for the short - rate, , r i , j . You may assume that the term - structure of interest...
-
1. What is the basis of cooperation between management and labour at (a) SWA and (b) Ryanair? 2. Are Ryanair pilots genuinely or falsely self-employed? 3. How would you characterise the soul and the...
-
Auditors are responsible for the quality of the work related to management and control of a. Inherent risk. b. Relative risk. c. Control risk. d. Detection risk.
-
The cash account is included in more than one accounting process because a. All the business processes involve either receiving or paying out cash at some point. b. Cash is the most difficult asset...
-
A partially completed flowchart for the Bottom Manufacturing Corporation's credit sales is presented on the following page. When a customer's order is received, a sixpart sales order is prepared and...
-
Solve the following linear system by Gaussian elimination with back-substitution without introducing fractions in your row-reduction. If there is no solution, explain why. -3x+8y + 82 = -8 -2x+ y -...
-
Introduction Some predictions are a slam dunk. Retail will continue to be driven by technology. Science fiction is coming to life in the form of robotics and virtual reality. And the Internet will...
-
Oswego Clay Pipe Company provides services of $ 5 0 , 0 0 0 to Southeast Water District # 4 5 on April 1 2 of the current year with terms 1 / 1 5 , n / 6 0 . What would Oswego record on April 1 2 ?...
-
Assume the following excerpts from a company's balance sheet: Property, plant, and equipment Beginning Balance $3,500,000 Ending Balance $3,700,000 $1,100,000 $800,000 Long-term investments During...
-
On January 1, 2021, Bonita Corp. had472,000shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 125,000shares...
-
Making a correct random guess as an answer to a particular multiple-choice question on an SAT test with possible answers of a, b, c, d, e, one of which is correct Theoretical Probabilities. For...
-
Find the market equilibrium point for the following demand and supply functions. Demand: 2p = - q + 56 Supply: 3p - q = 34
-
Why might an auditor conduct a surprise observation of a payroll distribution? What should be observed?
-
Describe a control test using generalized audit software that can be performed in a computerized payroll system.
-
Describe analytical procedures that can be used for payroll transactions and balances.
-
Product Weight Sales Additional Processing Costs P 300,000 lbs. $ 245,000 $ 200,000 Q 100,000 lbs. 30,000 -0- R 100,000 lbs. 175,000 100,000 If joint costs are allocated based on relative weight of...
-
The projected benefit obligation was $380 million at the beginning of the year. Service cost for the year was $21 million. At the end of the year, pension benefits paid by the trustee were $17...
-
CVP Modeling project The purpose of this project is to give you experience creating a multiproduct profitability analysis that can be used to determine the effects of changing business conditions on...
Study smarter with the SolutionInn App