(c) Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, performance materiality, and planned evidence, State the effect that changing each of the following factors, while the other factors remain unchanged will have on planned work and evidence (state whether it will increase or decrease the planned audit work and evidence ) 1. an increase in acceptable audit risk 2. an increase in inherent risk 3. a decrease in control risk 4. an increase in planned detection risk 5. an increase in performance materiality
(c) Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, performance materiality, and planned evidence, State the effect that changing each of the following factors, while the other factors remain unchanged will have on planned work and evidence (state whether it will increase or decrease the planned audit work and evidence ) 1. an increase in acceptable audit risk 2. an increase in inherent risk 3. a decrease in control risk 4. an increase in planned detection risk 5. an increase in performance materiality
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(c) Using your knowledge of the relationships among acceptable audit risk, inherent risk,
control risk, planned detection risk, performance materiality, and planned evidence,
State the effect that changing each of the following factors, while the other factors remain
unchanged will have on planned work and evidence (state whether it will increase or
decrease the planned audit work and evidence )
1. an increase in acceptable audit risk
2. an increase in inherent risk
3. a decrease in control risk
4. an increase in planned detection risk
5. an increase in performance materiality
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