... Inherent risk has been assessed at 50% and control risk at 80%.
Required
(a) Explain the meaning of a 10% level of audit risk.
(b) What level of detection risk is implied by this information?
(c) If the level of audit risk were only 5%, how would this affect the level of
detection risk and how would the audit work be affected by this change?
An auditor has set an overall level of acceptable audit risk in respect of a client of 10%.?
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