Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P ASR 001 | Rev Section 2 (18 Marks) Mr Mass in the appointed auditor of Multichoice and he has been asked to calculate inherent
P ASR 001 | Rev Section 2 (18 Marks) Mr Mass in the appointed auditor of Multichoice and he has been asked to calculate inherent risk. The audit risk is 7%, detection risk 80% and control risk is 64%. He wants to reduce audit risk to an acceptably low level by increasing materiality. Based on the given scenario: a) Calculate inherent risk? (4) Page 2 of 4 What is the effect of increasing inherent risk on the audit risk? c) Indicate the factors that indicate the existence of inherent risk? (2) (4) d) Mention ways that Mr Mass can use to reduce detection risk to an acceptably lower level of assurance? (4) e) Provide Examples of control risk? (4)
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