Question
________ the audit risks _________ the materiality and
_______ the audit effortSolution
Lower audit risks imply that the auditor is more confident that the financial statements are free from material misstatements. Higher materiality means that the auditor sets a higher threshold for what is considered a material misstatement, which means smaller errors are considered immaterial. Lower audit effort is required when the auditor has lower risks and higher materiality, as they need to perform fewer procedures to achieve their audit objectives.
Determine the diameter of the incircle of a triangle whose area is 60 cm² and the semi-perimeter is 20 cm.
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