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Using your knowledge of the relationships among the type of audit risk, state the effect on planned detection risk and planned evidence (increase, decrease, no
Using your knowledge of the relationships among the type of audit risk, state the effect on planned detection risk and planned evidence (increase, decrease, no effect) of changing each of the following situations, while the other risk remain constant:
Situations | Effect on PDR | Effect on planned evidence |
An increase in acceptable audit risk | ||
An increase in control risk | ||
An increase in inherent risk | ||
An increase of inherent risk and decrease in control risk in the same amount | ||
A decrease in acceptable audit risk | ||
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