Audit risk

Certain accounts like Cash, Lines of Credit, and Intangibles have to be audited 100 percent because these generally involve perceptible and provable transactions which do not normally expend time in the entire audit process. These are also significant figures to a confectionary industry like Sweet Truths.
The accounts that are audited 100 percent needs to have materiality apportioned to such accounts; this is the reason why materiality is distributed only to those accounts that are sampled. In accounts like inventory, property, plant and equipment, and accounts payable, a number of transactions and verification have to be undergone and auditing them meticulously would take so much time.
Detection risk is the only component of audit risk that is within the control of the auditor. This risk may fall under the control of an auditor by means of knowing the range of the audit procedures performed by him or her as an auditor.  From the balance sheet accounts in the simulation provided, I presumed the audit risk is at high while having inherent risk and control risk at low for a certain detection risk at high.

            The reason the three risks that compose audit risk are inter-related is that they support the assessor like an auditor to ascertain the extent of auditing systems and procedures in a certain balance of account or in a group of transactions. The three risks namely, inherent risk, control risk and detection risk are deemed to be the products of an audit risk model. Both inherent risk and control risk cover the account balance or class of transaction, its associated claims and assertions that possibly contain erroneous reports that could be substantial to the financial statements upon combination with statement flaws in some other balances or classes. Detection risk, as defined, is an audit procedure that leads the auditor to conclude that erroneous statements which could be material do not exist when in the actual setting such incorrect statements do exist. The higher would be the identified audit risk, the lesser is the evidence of risk that has to be accumulated by the auditor, vice versa.

Don't use plagiarized sources. Get Your Custom Essay on
Audit risk
Just from $13/Page
Order Essay


Austin Community College District (2007, May 16) Detection Risk. Retrieved July 15, 2008, from

FratFiles (n.d.) The World of Risk. Retrieved July 15, 2008, from

Reyhl, Duane (2006, May 28) Materiality. Retrieved July 15, 2008, from

Australian Educational Research Pty Ltd. (n.d.) Audit Risk. Retrieved July 15, 2008, from

University of Birmingham (n.d.) Audit Risk, Retrieved July 15, 2008, from


Achiever Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

error: Content is protected !!
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code RESEARCH