Saturday, January 16, 2010

If test of control induce the audit team to change the assessed level of control risk for?

If test of control induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0, and the audit risk (0.05) and inherent risk remain constant, the acceptable level of detection risk is most likely toIf test of control induce the audit team to change the assessed level of control risk for?
Answer:





Detection risk should decrease.





Source:


Three years experience in the field of auditing.If test of control induce the audit team to change the assessed level of control risk for?
To add to EJ,





You need to lower Detection risk by performing more substantive procedures.(i'm assuming your control test failed), specifically Test of Detail. or look for mitigating controls.

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