Auditing course

estion 20 which of the following two equations are correct about Audit risk model A. Audit risk = risk of material misstatement * Detection risk B. Audit risk = inherent risk* control risk * Detection risk C. Audit risk = (inherent risk + control risk) * Detection risk D. Audit risk = inherent risk * (control risk + Detection risk) ion 19 will save this response Following are the two examples of misappropriation of assets. A. Manipulation or alteration of accounting records used to prepare fac B. Stealing of Assets C. Misrepresentation in, or intentional omission from the financial statements de D. Embezzling cash receipts Muinata anatbar mactia will sathiesenanen Testion 17 Which of the following two helps in understanding entity environment A. Entity internal control procedure B. Its Objectives, strategies, and business risks C. Credit taken by entity D. Audit risk associated with client estion 18 Save these Following are the two limitations of Audit risk model A. It does not consider potential auditor error, B. It needs practical implication C. There is no way of knowing what the preliminary level of risk actually D. It should be properly documented