OT Exam

A control objective could be: No overtime to be paid without authorisation ICEQ: Can unauthorised OT be paid? A 'No' answer is what you want. Audit risk = Inherent risk x Control risk x Detection risk. The auditor cannot affect inherent risk and control risk in the short term, but can affect detection risk by, for example, doing more audit work. If detection risk changes the audit risk must change because detection risk is part of the equation above.