PA has set acceptable audit risk at 5% and determined that inherent risk and control risk is at 100%.What is the detection risk?
A)5%
B)50%
C)95%
D)20%

Name: PA has set acceptable audit risk at 5% and determined that inherent risk and control risk is at 100%.What is the detection risk? A)5% B)50% C)95% D)20%
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

Detection risk is calculated as Audit Risk divided by the product of Inherent Risk and Control Risk. Here, Detection Risk = 5% / (100% * 100%) = 5%.

PA Has Set Acceptable Audit Risk at 5% and Determined