Question
11.Consider the following statement: When inherent and control risk are assessed as high, the risk of material misstatement is assessed as high, and an auditor
11.Consider the following statement: "When inherent and
control risk are assessed as high, the risk of material misstatement is
assessed as high, and an auditor will set detection risk as low to reduce
audit risk to an acceptably low level." Explain what it means to set detection
risk as low. What does this mean for the operation of the audit?
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Comparative International Accounting
Authors: Christopher Nobes, Robert Parker
13th edition
1292081902, 1292081908, 9781292081960 , 1292081961, 978-1292081908
