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Student_ACC_421_Chapter_9_Outline - II Risk A Audit risk B...

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ACC 421 Chapter Nine Outline I. Materiality A. Set preliminary judgment about materiality B. Allocate preliminary judgment about materiality to segments C. Estimate misstatement and compare with preliminary judgment C.1. Known misstatement C.2. Likely misstatement
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Unformatted text preview: II. Risk A. Audit risk B. Inherent risk B.1. Nature of the client’s business B.2. Results of previous audits B.3. Initial versus repeat engagement B.4. Related parties B.5. Nonroutine transactions C. Control risk D. Detection risk...
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