Need Clarification on CA Final MCQ Number 322 and 333. as in 322 "Identify the INCORRECT option" has to choose and in 333 answer should be 4% instead of 25%

Questions › Category: SA-315 › Need Clarification on CA Final MCQ Number 322 and 333. as in 322 "Identify the INCORRECT option" has to choose and in 333 answer should be 4% instead of 25%

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sagar goenka asked 5 years ago

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Ravi Staff answered 5 years ago

322 — correct question should be select correct option, instead of select incorrect option
333 —
Audit Risk = 5%
Inherent Risk = 40%
Control Risk = 50%
Detection Risk = ?
Audit Risk = Inherent Risk x Control Risk x Detection Risk
0.05 = 0.4 x 0.5 x DR
DR = 0.05 / 0.4 x 0.5
DR = 0.05 / 0.2
DR = 0.25
DR = 25%