How is audit risk impacted with changes in the assessment of inherent risk, control risk, and detection risk? - Universal CPA Review
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How is audit risk impacted with changes in the assessment of inherent risk, control risk, and detection risk? - Universal CPA Review
Audit risk is the combination of inherent risk, control risk, and detection risk. Remember, the audit team will “assess” inherent risk and control risk. Based on the assessment, then audit team will set detection risk, which ultimately impacts the amount of substantive procedures that must be performed. So in the visual below, you can see ...
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