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a. Some account balances, such as those for pensions and leases, are the result of complex calculations. The s(1) audit risk.(2) detection risk.(3) sampling risk.(4) inherent risk.b. Inherent risk and control risk differ from planned detection risk in that they9-23 (Objectives 9-6, 9-8)The following questions concern audit risk. Choose the best response.c. Which of the following bestdescribes the element of inherent risk that underlies the application of auditing
susceptibility to material misstatements in these types of accounts is defined as
a. As the acceptable level of detection risk decreases, an auditor may(1) reduce substantive testing by relying on the assessments of inherent risk and control risk.(2) postpone the planned timing of substantive tests from interim dates to the year-end.(3) eliminate the assessed level of inherent risk from consideration as a planning factor.(4) lower the assessed level of control risk from the maximum level to below the maximum.