AUDITING+ASSURANCE SERVICES (LL)
11th Edition
ISBN: 9781266448119
Author: MESSIER
Publisher: MCG
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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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Chapter 4 Solutions
AUDITING+ASSURANCE SERVICES (LL)
Ch. 4 - Prob. 4.1RQCh. 4 - Prob. 4.2RQCh. 4 - Prob. 4.3RQCh. 4 - Prob. 4.4RQCh. 4 - Prob. 4.5RQCh. 4 - Prob. 4.6RQCh. 4 - Prob. 4.7RQCh. 4 - Prob. 4.8RQCh. 4 - Prob. 4.9RQCh. 4 - Prob. 4.10RQ
Ch. 4 - Prob. 4.11RQCh. 4 - Prob. 4.12RQCh. 4 - Prob. 4.13MCQCh. 4 - Prob. 4.14MCQCh. 4 - Prob. 4.15MCQCh. 4 - Prob. 4.16MCQCh. 4 - Prob. 4.17MCQCh. 4 - Prob. 4.18MCQCh. 4 - Prob. 4.19MCQCh. 4 - Prob. 4.20MCQCh. 4 - Prob. 4.21MCQCh. 4 - Prob. 4.22MCQCh. 4 - Prob. 4.23PCh. 4 - Prob. 4.24PCh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Prob. 4.28PCh. 4 - Prob. 4.29PCh. 4 - Prob. 4.30PCh. 4 - Prob. 4.31PCh. 4 - Prob. 4.32P
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