Planned detection risk is a measure of the risk that audit evidence for a segment will fail to detect misstatements above a tolerable amount. This of course, assuming a misstatement can exist. To reduce this risk, the auditor would increase the amount of evidence they collect. For example, if the auditor wanted a low level of risk to test the existence of inventory procedures in relation to detect a material misstatement, they would increase the amount of inventory tested or the count of audit procedures.
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