Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4. Audit risk model (6 points) 1. How is ARIA reflected in the audit risk model? ( 2 points) 2. In testing the balance

Question 4. Audit risk model (6 points)

1. How is ARIA reflected in the audit risk model? ( 2 points)

2. In testing the balance of accounts receivable, the auditor estimated the upper bound misstatement (that is, overstatement) of the population of accounts receivable to be $80,000, and the tolerable misstatement for this account is $84,000. The auditor used an ARIA of 10% in the sampling test. Please provide the conclusion that an auditor will make based on the above information. (4 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Text Problems And Cases

Authors: M Y Khan, P K Jain

6th Edition

125902668X, 978-1259026683

More Books

Students also viewed these Accounting questions