Auditors frequently refer to the termsaudit assurance, overall assurance, andlevel of assurance to refer toDetection riskO Audit report riskAcceptable audit riskO Inherent risk

Audit risk is the risk that an auditor express an inappropriate audit opinion when the financial…

Answered: Auditors frequently refer to the terms…

Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to O Detection risk O Audit report risk O Acceptable audit risk O Inherent risk

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 21CYBK

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Auditors frequently refer to the terms
audit assurance, overall assurance, and
level of assurance to refer to
Detection risk
O Audit report risk
Acceptable audit risk
O Inherent risk

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The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelated
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