auditing

Question one Answer each of the following statements true or false. If it's false explain how the correct statement should be. (10 marks) i) If planned performance materiality is reduced, the amount of evidence the auditor accumulates will decrease. ii) If acceptable audit risk is low, and inherent risk and control risk are both low, then planned detection risk should be high. ii) If the audit assurance rate or tolerable misstatement is 95%, then the level of acceptable audit risk is 10%. iv) A high detection risk equates to a low amount of audit evidence needed. v) When an auditor sets a low acceptable audit risk, it means that he wants to be more certain that the financial statements are not materially misstated. vi) As acceptable audit risk is decreased, the likely cost of conducting an audit decreases