Mazars Audit Firm is re-appointed as auditors in Beautiful Jewels for a year ended 31st March 2020. The overall level of acceptable audit risk of the client is considered as 10%. The inherent risk and control risk are assessed at 50% and 80% respectively. (i)Explain the meaning of 10% level of Audit Risk.
Mazars Audit Firm is re-appointed as auditors in Beautiful Jewels for a year ended 31st March 2020. The overall level of acceptable audit risk of the client is considered as 10%. The inherent risk and control risk are assessed at 50% and 80% respectively. (i)Explain the meaning of 10% level of Audit Risk.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement
Section: Chapter Questions
Problem 26MCQ
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Mazars Audit Firm is re-appointed as auditors in Beautiful Jewels for a year ended 31st March 2020. The overall level of acceptable audit risk of the client is considered as 10%. The inherent risk and control risk are assessed at 50% and 80% respectively.
(i)Explain the meaning of 10% level of Audit Risk.
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