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Hi – i really still don’t understand what the difference between these 2 are.
Would the same risks apply for both types of questions? From the exam kit Answers i can see both questions have the same answers – so whats the difference please?
See Chapter 11 of the notes – on page 59, Audit risk is the WIDER term which includes detection risk; RoMM is IR and CR. You therefore won’t see a lot of difference since the majority of audit risks are RoMM.
Thanks Kim. Just to confirm, would i gain marks if i had a question that asked ‘write audit risks’ and i wrote the type of risk – e.g. Listed company so potentially management bias to boost the performance etc but i did not write that increases detection risk?
Do you have to mention what type of risks (inherent, control and detection risk) it effect for a question regd audit risks?
But for a question on ROMM i did not have to write about the inherent, control and detection?
Look at the answer to M20 Q1 which called for audit risk – there is only one mention of inherent risk and no specific mention of control risk or detection risk – so clearly not necessary to earn marks. If Q asks for ROMM, points concerning detection risk are not required/will not earn marks (regardless of whether or not they are labelled “detection”).
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