When using the audit risk model,
A) auditors find it relatively easy to measure the components of the model.
B) many auditors use broad and subjective measurement terms.
C) auditors find it easy to measure the amount of evidence implied by a given planned detection risk.
D) auditors are only concerned with understating accounts.

Question

Quizplus · Accepted Answer

Many auditors use broad and subjective measurement terms when using the audit risk model. This is because the components of the model (inherent risk, control risk, and detection risk) are not easily quantifiable and require judgments and assessments by the auditor.

When Using the Audit Risk Model