Audit risk is a risk that auditor 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. To indicate: The difference between the audit risk and engagement risk.

Question

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Answer 1

Question

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

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Answer 2

Question

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

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Answer 3

Question

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

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Answer 4

Question

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

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Answer 5

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

Answer 6

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

Answer 7

Chapter 4, Problem 4.1RQ

To determine

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.

Answer 8

Expert Solution & Answer

Explanation of Solution

Audit risk is a risk that auditor may provide an inappropriate audit opinion. There are three components of the audit risk; inherent risk, control risk, and detection risk. Engagement risk is a risk that auditor may lose the client and may face revenue losses due to loss of client. Audit risk is an adjustable risk and it can be minimized by adjusting the detection risk but engagement risk is not under the control of the auditor. The auditor may face conflict between these two risks and need to take prudent of professional judgments to minimize both risks.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

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

Audit risk is a risk that auditor 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. To indicate: The difference between the audit risk and engagement risk.

Concept Introduction: Audit risk is a risk that auditor 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. To indicate: The difference between the audit risk and engagement risk.

Explanation of Solution

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Chapter 4 Solutions

Concept Introduction:

Audit risk is a risk that auditor 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.

To indicate: The difference between the audit risk and engagement risk.