L3 Notes_Part_10 - 1. R(IR,CR) and R(AR, IR) 2....

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Audit Risk Model Audit Risk Detection Risk Control Risk Inherent Risk = X X Risk Assessment and Results of Knowledge Acquisition Focus of Substantive Testing Grade analogy; Overreliance on last year’s W/P, risk is endogenous
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Audit Risk Model Audit Risk Detection Risk Control Risk Inherent Risk = X X Acceptable Audit Risk Achieved Audit Risk W.R. Knechel < = Model Misspecification
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Unformatted text preview: 1. R(IR,CR) and R(AR, IR) 2. Multiplicative form, unitary weights 3. Sampling risk and CR assessment 4. IC prevents as well as detects errors 5. Overreliance on last year’s audit 6. High, Medium, Low © W.R. Knechel Audit Risk Model Analogy Inherent Risk Detection Risk Control Risk Striker Goal Goalie The “Wall” Bend it Like Becham?...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L3 Notes_Part_10 - 1. R(IR,CR) and R(AR, IR) 2....

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