100%(2)2 out of 2 people found this document helpful
This preview shows page 1 - 3 out of 5 pages.
9-23 (Objectives 9-6, 9-8)The following questions concern audit risk. Choose the best response.a. Some account balances, such as those for pensions and leases, are the result of complexcalculations. The susceptibility to material misstatements in these types of accounts is defined aso(1) audit risk.o(2) detection risk.o(3) sampling risk.o(4) inherent risk.b. Inherent risk and control risk differ from planned detection risk in that theyo(1) arise from the misapplication of auditing procedures.o(2) may be assessed in either quantitative or nonquantitative terms.
o(3) exist independently of the financial statement audit.o(4) can be changed at the auditor’s discretion.c. Which of the following bestdescribes the element of inherent risk that underlies the application of auditing standards?9-24 (Objective 9-9)The following questions deal with audit risk and evidence. Choose the best response.a. As the acceptable level of detection risk decreases, an auditor may