Which of the following terms best describes the numerical depiction of the relationship between control risk,inherent risk,detection risk,and audit risk?
A)Audit risk model.
B)Risk of misstatement model.
C)Significance model.
D)Materiality equation.

Question

Quizplus · Accepted Answer

The numerical depiction of the relationship between control risk, inherent risk, detection risk, and audit risk is known as the audit risk model. It helps auditors assess the overall risk of material misstatement in the financial statements and determine the appropriate level of audit effort needed to mitigate that risk.

Which of the Following Terms Best Describes the Numerical Depiction