Hey guys,
Can someone explain to me why Detection Risk would increase in this situation….
Which of the following types of risks most likely would increase if accounts receivable are confirmed three months before year-end?
From my understanding, if Sub. AP are done prior to Y/E, this would cause DR to dec. in the AP formula in order to keep the AR formula consistent with how the Auditors had originally set the AR. If I were to see this on the exam, I would always pick DR because DR is the only risk the Auditor can control but can someone shed some light on this for me?
Thanks!
Here we go Again
AUD: (65)(66) 77
REG: (66) (48) destroyed me mentally.....
FAR: (68) (66)(69)(71)
BEC: (63) 75
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