Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk. Audit risk has its three components; inherent risk, control risk, and detection risk. To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

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Answer 1

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Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

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Which of the following statements is correct regarding detection risk and the audit risk model? OA. The two components of detection risk are test of details risk and inherent risk. B. Detection risk is equal to risk of material misstatement divided by audit risk. OC. There is an inverse relationship between the risk of material misstatement and detection risk. OD. There is a direct relationship between control risk and detection risk.

What are the components of the risk of material misstatement (RMM)? What are the components of the audit risk model?

The combination of inherent risk and control risk constitutes : A. Occurence risk B. Audit risk C. Detection risk D. Combined risk

Answer 2

Question

Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

Answer 6

Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

Answer 7

Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 4 - Prob. 4.1RQ Ch. 4 - Prob. 4.2RQ Ch. 4 - Prob. 4.3RQ Ch. 4 - Prob. 4.4RQ Ch. 4 - Prob. 4.5RQ Ch. 4 - Prob. 4.6RQ Ch. 4 - Prob. 4.7RQ Ch. 4 - Prob. 4.8RQ Ch. 4 - Prob. 4.9RQ Ch. 4 - Prob. 4.10RQ

Solution Summary: The author explains that audit risk is a risk that auditor may provide an inappropriate opinion on the basis of his findings during the audit.

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Chapter 4 Solutions