Question
After making a preliminary assessment of the risk of material misstatement during planning and beginning to apply audit procedures, an auditor determines that this risk
After making a preliminary assessment of the risk of material misstatement during planning and beginning to apply audit procedures, an auditor determines that this risk is actually higher than anticipated. Which would be the most likely effect of this finding on the auditor's desired level of detection risk and the overall level of audit risk, as compared to the levels originally planned?
| Auditor's Desired Level of Detection Risk | Overall Level of Audit Risk |
1.
| Decrease | Same |
2.
| Increase | Same |
3.
| Same | Higher |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing As Preventive Measure Of Future Financial Crisis Internal Control System Possibilities And Dangers
Authors: Muhammed Zakir Hossain
1st Edition
365918781X, 978-3659187810
