Question
Our audit firm, Green& Associates, emphasises to new graduates in professional development training sessions the importance of understanding audit risk to the planning phase of
Our audit firm, Green& Associates, emphasises to new graduates in professional development training sessions the importance of understanding audit risk to the planning phase of an audit of a financial statements engagement. Green & Associates evaluates the desired level of audit risk by disaggregating it into three components: inherent risk, control risk and detection risk.
For each example test in the left hand columnof the Table below, write which of the three components is being most directly illustrated by each example in the right hand column.
Note:only one risk component is most directly illustrated for each test.
Our audit firm, Green& Associates, emphasises to new graduates in professional development training sessions the importance of understanding audit risk to the planning phase of an audit of a financial statements engagement. Green & Associates evaluates the desired level of audit risk by disaggregating it into three components: inherent risk, control risk and detection risk.
For each example test in the left hand columnof the Table below, write which of the three components is being most directly illustrated by each example in the right hand column.
Note:only one risk component is most directly illustrated for each test.
Example test | Most directly illustrated risk |
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