You are teaching a class of new hires at your international accounting firm. Explain the audit risk model using a mathematical formula.
AR = RMM × DR
AR = Audit risk
RMM = Risk of material misstatement
DR = Detection risk

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The Answer of You are teaching a class of new hires at your international accounting firm. Explain the audit risk model using a mathematical formula.
AR = RMM × DR
AR = Audit risk
RMM = Risk of material misstatement
DR = Detection risk

You Are Teaching a Class of New Hires at Your