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Business

24 January, 08:38

Assume for Client X that inherent risk is assessed at 30%, control risk is assessed at 100%, audit risk is 5%, and detection risk is therefore determined to be 17%. Assume for Client Z that inherent risk is assessed at 100%, control risk is assessed at 100%, audit risk is 1%, and detection risk is therefore determined to be 1%. What is true about the amount of audit work that will need to be conducted? a. Client X will require more audit work than Client Z. b. Client Z will require more audit work than Client X. c. Both clients will require a similar amount of audit work. d. The auditor will most likely resign from the Client Z audit because the inherent risk and control risk are so high.