[evp490]

I’m having trouble understanding what they mean when they say that assessed level of risk is high. Does it mean that there is a high probability of a risk being present? Or that there is a high acceptable level? Wiley seems contradictory and I can’t find an explicit definition.

If there is a high probability then you would increase testing, but if there is a high acceptable level then you decrease testing. Do I have that right?

Thanks!

[monikernc]

try reading through this to help you understand. it is a key concept that you have to grasp to pass.
https://accounting-simplified.com/audit/risk-assessment/audit-risk.html

that does a better job than i can to explain it.

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[Author]

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