Pam is auditing the accounts payable account of her client, Roadrunner Training Company (RTC). Pam has decided to perform her testing at interim and to use smaller sample sizes. Which of the following pairs of information about the combined assessed level of inherent risk and control risk and detection risk best fits this scenario?
A : Combined assessed level of inherent risk and control risk » low; detection risk » high
B : Combined assessed level of inherent risk and control risk » high; detection risk » low
C : Combined assessed level of inherent risk and control risk » low; detection risk » low
D : Combined assessed level of inherent risk and control risk » high; detection risk » high

Question

06-08-2021
Social Studies

Answered

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Pam is auditing the accounts payable account of her client, Roadrunner Training Company (RTC). Pam has decided to perform her testing at interim and to use smaller sample sizes. Which of the following pairs of information about the combined assessed level of inherent risk and control risk and detection risk best fits this scenario?
A : Combined assessed level of inherent risk and control risk » low; detection risk » high
B : Combined assessed level of inherent risk and control risk » high; detection risk » low
C : Combined assessed level of inherent risk and control risk » low; detection risk » low
D : Combined assessed level of inherent risk and control risk » high; detection risk » high

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