Planned detection risk I.determines the amount of substantive evidence the auditor plans to accumulate.
II)is dependent on inherent risk and business risk.
A) I only
B) II only
C) I and II
D) None of the above
Inherent risk is often high for an account such as:
C) capital stock.
D) notes payable.
Inherent risk and control risk:
A) are inversely related to each other.
B) are inversely related to detection risk.
C) are directly related to detection risk.
D) are directly related to audit risk.
To what extent do auditors typically rely on internal controls of their public company clients?
B) Only very little