Which of the Following Audit Risk Components May Be Assessed
Which of the following audit risk components may be assessed in non-quantitative terms?
Based on audit evidence gathered and evaluated,an auditor decides to increase the assessed level of control risk from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would:
A) increase materiality levels.
B) decrease detection risk.
C) decrease substantive testing.
D) increase inherent risk.
When dealing with audit risk:
A) auditors accept some level of risk in performing the audit function.
B) most risks that auditors encounter are relatively easy to measure.
C) the audit risk model is only used for classes of transactions.
D) most audit firms prefer to use a quantitative assessment for risk.
Why do auditors use the audit risk model when planning an audit?