Describe the Relationship Between Detection Risk and Audit Risk
The risk that the auditors audit procedures will fail to detect a misstatement and the risk that the misstatements will get through the audit procedures. An auditor uses the audit risk model to understand the relationship between the detection risk and the other audit risks ie inherent risk control risk and the overall audit risk enabling him to determine an acceptable level of detection risk. Difference Between Inherent Risk And Control Risk Difference Between Detection risk is caused by the failure of the auditor to discover a. . Estimating the inherent risk IR f. Inherent and control risk are the risks of material misstatement arising in the financial statements. For organisations without an effective enterprise risk management ERM function or one in its early stages of. The auditor uses audit risk model to understand the relationship between detection risk and other risks in the audit risk model ie. It is composed of t...
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