MAKE SURE YOU GIVE ME PERCENTAGE USE TWO (2) DECIMAL PLACES A. MW \& Co., CPAs, is planning its audit procedures for its tests of the valuation of inventories of EC Manufacturing Co. The auditors on the engagement have assessed inherent risk and control risk for valuation of inventories at 85% and 30%, respectively. Calculate the appropriate level of detection risk for the audit of this assertion, given that the auditors wish to restrict audit risk for the assertion to 5% Detection Risk = B. The auditors wish to limit the audit risk of material misstatement in the test of inventories to 3 percent. They believe that inherent risk is 85%, and there is a 45% risk that material misstatement could have bypassed the client's system of internal control. What is the maximum detection risk the auditors should specify in their substantive procedures of details of inventories? Detection Risk = C. Auditors have assessed inherent risk for a particular assertion at 85% and control risk at 15%. In addition, they have performed audit procedures that they believe have a 10% risk of failing to detect a material misstatement in the assertion. Calculate the audit risk
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