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Audit Risk = (Inherent Risk) * (Control Risk) * (Detection Risk) We want audit risk to be no greater than 5%. We assess Inherent Risk

Audit Risk = (Inherent Risk) * (Control Risk) * (Detection Risk)

We want audit risk to be no greater than 5%.

We assess Inherent Risk as 60% and Control Risk at 20%.

So Detection Risk must be no greater than ?

Auditors report to the Audit Committee. What are the qualifications to serve on the Audit Committee?

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