Chapter _3 (Audit Risk & Materiality)

Chapter _3 (Audit Risk & Materiality) - A...

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A Simplistic 2x2 Contingency Model View of Auditing ----“True” but unknown state of nature---- F/S are misstated F/S are fairly stated Qualified or Adverse Opinion Unqualified Opinion Auditor Concludes (Reports):
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A Simplistic 2x2 Contingency Model View of Auditing ----“True” but unknown state of nature---- F/S are misstated F/S are fairly stated Qualified or Adverse Opinion Unqualified Opinion Auditor Concludes (Reports): Correct judgment Correct judgment
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A Simplistic 2x2 Contingency Model View of Auditing ----“True” but unknown state of nature---- F/S are misstated F/S are fairly stated Qualified or Adverse Opinion Unqualified Opinion Auditor Concludes (Reports): Correct judgment Correct judgment Type I Error (Efficiency)
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A Simplistic 2x2 Contingency Model View of Auditing ----“True” but unknown state of nature---- F/S are misstated F/S are fairly stated Qualified or Adverse Opinion Unqualified Opinion Auditor Concludes (Reports): Correct judgment Correct judgment Type I Error (Efficiency) Type II Error (Effectiveness) AUDIT RISK
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Chapter _3 (Audit Risk & Materiality) - A...

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