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T he CPA firm of Lumley & Lu uses a quantitative approach to implementing the audit risk model. Calculate detection risk for each of the
T
he CPA firm of Lumley & Lu uses a quantitative approach to implementing the audit risk model. Calculate detection risk for each of the following hypothetical clients. (Omit the "%" sign in your response. Round your final answer to the nearest whole number.) |
Client No. | Audit Risk | Risk of Material Misstatement | Detection Risk |
1 | 5% | 20% | % |
2 | 5% | 50% | % |
3 | 10% | 15% | % |
4 | 10% | 40% | % |
|
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