Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the auditor has made his preliminary assessment of control risk and has assessed inherent risk. Upon testing the internal controls, it turns out the

image text in transcribed

Assume the auditor has made his preliminary assessment of control risk and has assessed inherent risk. Upon testing the internal controls, it turns out the auditor must increase his assessment of control risk. As a result, A) tolerable detection risk will be higher than it would have been under the preliminary assessment of control risk B) inherent risk will be lower than it would have been under the preliminary assessment of control risk C) tolerable detection risk will be lower than it would have been under the preliminary assessment of control risk D) inherent risk will be higher than it would have been under the preliminary assessment of control risk

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Auditing Handbook

Authors: J. P. Russell,

4th Edition

0873898478, 978-0873898478

More Books

Students also viewed these Accounting questions

Question

22.9. Develop a checklist for use during configuration audits.

Answered: 1 week ago