The Audit Risk Model
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YouTubeEdspira
The Audit Risk Model
The audit risk model shows audit risk (the risk the auditor will issue an incorrect opinion when the financial statements are materially misstated) as a function of 3 factors: (1) inherent risk, (2) control risk, and (3) detection risk. Inherent risk is the susceptibility of an account to material misstatement in the absence of internal ...
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