Detection Risk (DR) is the risk the auditor will not detect a misstatement in the financial statements. Detection risk is a function of the effectiveness audit procedures.
Therefore:
RMM (defined previously) X DR = Audit Risk
Detection Risk - #4 Risk Definition Series
TrackBack
TrackBack URL for this entry:
http://www.theministryblog.com/mt-tb.cgi/236
Search
About This Entry
This entry was posted on July 21, 2008 10:30 AM.
The previous post in this blog was #4 Contributions - General Requirements .
The next post in this blog is Defining “Those In Charge”.
Many more can be found on the main index page or by looking through the archives.
Categories
- "Church" Quotes
- Audit Issues
- Board of Governance
- Book Reviews
- Church Property
- Compensation & Benefits
- Contributions
- Controller's Corner
- Expenses
- Financial Reporting
- Fraud
- Innovative Ministry
- Leadership Governance
- Little Debits
- Minister Taxation & Reporting
- Ministry Events and Happenings
- Ministry Terminology
- My Favorites
- Non-Compete Agreements
- Other
- Tax Reporting
Subscribe
Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii)promoting marketing or recommending to another party any transaction or matter addressed herein.