Audit Risk Model. Sonya Bagri, Chartered Accountant (CA), is auditing the sales of Barlaam Books, which owns
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Audit Risk Model. Sonya Bagri, Chartered Accountant (CA), is auditing the sales of Barlaam Books, which owns two retail book stores in New Delhi. She has decided to allow only 25 incomplete sales slips.
Required
A. If Store # 1 had 200 errors in sales slips during the year, only 100 of which got through the internal controls, what percentage is the control risk and the detection risk?
B. If Store #2 had 300 errors in sales slips during the year, only 75 of which got through the internal controls, what percentage is the control risk and the detection risk?
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Related Book For
Principles Of Auditing: An International Perspective
ISBN: 9780077095321
1st Edition
Authors: Rick Stephan Hayes, Philip Wallage, Arnold Schilder, Roger Dassen
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