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The auditors wish to limit the audit risk of material misstatement n the test of inventories to 3 percent. They believe that inherent risk is
The auditors wish to limit the audit risk of material misstatement n the test of inventories to 3 percent. They believe that inherent risk is 95%, and there is a 55% risk that material misstatement could have bypassed the client's system of internal control. What is the maximum detection risk the audits should specify in their substantive procedures of details of inventories?
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