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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Audit Risk
Hi
If there is a situation in a scenario which states that the company is intending to list on stock exchange and management might have incentive to manipulate the amounts, does this increases the detection risk for auditor??
Thanks
It increases inherent risk component of RoMM (see page 54). The auditor’s response to the risk should then reduce detection risk to an acceptably low level.
Thanks
You’re welcome!