Question 1
Auditors respond to risk primarily by
I. | changing the extent of testing. |
II. | changing the types of audit procedures. |
◦ I only
◦ II only
◦ both I and II
◦ neither I nor II
Question 2
When using the audit risk model,
◦ auditors find it relatively easy to measure the components of the model.
◦ many auditors use broad and subjective measurement terms.
◦ auditors find it easy to measure the amount of evidence implied by a given planned detection risk.
◦ auditors are only concerned with understating accounts.