The CPA firm of Lumley & Lu uses a quantitative approach to implementing the audit risk model.

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The CPA firm of Lumley & Lu uses a quantitative approach to implementing the audit risk model. Calculate detection risk for each of the following hypo thetical clients.

Risk of Material Misstatement Detection Risk Client No. Audit Risk 20% 50% 15% 40% 2 3 5% 10%

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Auditing and Assurance Services A Systematic Approach

ISBN: 978-1259162343

9th edition

Authors: William Messier, Steven Glover, Douglas Prawitt

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Question Posted: Sep 22, 2014 09:15 AM

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The CPA firm of Lumley & Lu uses a quantitative approach to implementing the audit risk model.

Question:

Risk of Material Misstatement Detection Risk Client No. Audit Risk 20% 50% 15% 40% 2 3 5% 10%

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Auditing and Assurance Services A Systematic Approach

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