Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, tolerable error and planned evidence, state the effect on planned evidence (increase or decrease) of changing each of the following factors, while the other factors remain unchanged.
1. An increase in acceptable audit risk. __________
2. An increase in inherent risk. __________
3. A decrease in control risk. __________
4. An increased in planned detection risk. __________
5. An increase in tolerable misstatement. __________

Question

Quizplus · Accepted Answer

The Answer of Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, tolerable error and planned evidence, state the effect on planned evidence (increase or decrease) of changing each of the following factors, while the other factors remain unchanged.
1. An increase in acceptable audit risk. __________
2. An increase in inherent risk. __________
3. A decrease in control risk. __________
4. An increased in planned detection risk. __________
5. An increase in tolerable misstatement. __________

Using Your Knowledge of the Relationships Among Acceptable Audit Risk