The following are concepts discussedin this chapter:1. Preliminary judgment about 7. Estimated total misstatementmateriality in a segment2. Control risk 8. Planned detection risk3. Risk of fraud 9. Estimate of the combined4. Inherent risk misstatement5. Risk of material misstatements 10. Acceptable audit risk6. Known misstatement 11. Performance materialitya. Identify which items are audit planning decisions requiring professional judgment.b. Identify which items are audit conclusions resulting from application of audit procedures and requiring professional judgment.c. Under what circumstances is it acceptable to change those items in part a. after theaudit is started? Which items can be changed after the audit is 95% completed?
The following are concepts discussed
in this chapter:
1. Preliminary judgment about 7. Estimated total misstatement
materiality in a segment
2. Control risk 8. Planned detection risk
3. Risk of fraud 9. Estimate of the combined
4. Inherent risk misstatement
5. Risk of material misstatements 10. Acceptable audit risk
6. Known misstatement 11. Performance materiality
a. Identify which items are audit planning decisions requiring professional judgment.
b. Identify which items are audit conclusions resulting from application of
c. Under what circumstances is it acceptable to change those items in part a. after the
audit is started? Which items can be changed after the audit is 95% completed?
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