Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Audit A has an inherent risk of 40% and a control risk of 60%. Audit B has an inherent risk of 30% and a control
Audit A has an inherent risk of 40% and a control risk of 60%. Audit B has an inherent risk of 30% and a control risk of 80%. If the acceptable audit risk is the same for both audits, which audit will have a lower detection risk?
Question 15 options:
| they will both have the same detection risk |
| audit B will have a lower detection risk |
| audit A will have a lower detection risk |
| this will depend on information that is not given in the question |
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