When Arthus Andersen audited Enron, they should have recognized an acceptable level of detection risk is inversely related to the: a. Assurance provided by substantive testing b. Risk of misappliction of audit procedure c. Preliminary judgement bout lateriality levels d. Risk of failing to discover material misstatements.
When Arthus Andersen audited Enron, they should have recognized an acceptable level of detection risk is inversely related to the: a. Assurance provided by substantive testing b. Risk of misappliction of audit procedure c. Preliminary judgement bout lateriality levels d. Risk of failing to discover material misstatements.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports On Financial Statements
Section: Chapter Questions
Problem 41RSCQ
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Question
When Arthus Andersen audited Enron, they should have recognized an acceptable level of detection risk is inversely related to the:
a. Assurance provided by substantive testing
b. Risk of misappliction of
c. Preliminary judgement bout lateriality levels
d. Risk of failing to discover material misstatements.
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