Below are four situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. For each situation, calculate planned detection risk.
SITUATION
$$\begin{array} { | l | l | l | l | l | }
\hline & 1 & 2 & 3 & 4 \
\hline \text { Audit risk } & 1 \% & 10 \% & 10 \% & 5 \% \
\hline \text { Inherent risk } & 100 \% & 100 \% & 50 \% & 20 \% \
\hline \text { Control risk } & 100 \% & 100 \% & 40 \% & 30 \% \
\hline \text { Detection risk } & & & & \
\hline
\end{array}$$

Question

Below are four situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. For each situation, calculate planned detection risk.
SITUATION
 $$\begin{array} { | l | l | l | l | l | } 
\hline & 1 & 2 & 3 & 4 \
\hline \text { Audit risk } & 1 \% & 10 \% & 10 \% & 5 \% \
\hline \text { Inherent risk } & 100 \% & 100 \% & 50 \% & 20 \% \
\hline \text { Control risk } & 100 \% & 100 \% & 40 \% & 30 \% \
\hline \text { Detection risk } & & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Below are four situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. For each situation, calculate planned detection risk.
SITUATION
 $$\begin{array} { | l | l | l | l | l | } 
\hline & 1 & 2 & 3 & 4 \
\hline \text { Audit risk } & 1 \% & 10 \% & 10 \% & 5 \% \
\hline \text { Inherent risk } & 100 \% & 100 \% & 50 \% & 20 \% \
\hline \text { Control risk } & 100 \% & 100 \% & 40 \% & 30 \% \
\hline \text { Detection risk } & & & & \
\hline
\end{array}$$

Below Are Four Situations That Involve the Audit Risk Model