Audit Risk Model Calculator
Audit Risk (Acceptable to Auditor)
5%
10%
Inherent Risk (Assessed by Auditor)
50.0%
Control Risk (Assessed or Set to Maximum by Auditor)
50.0%
MODERATE reliance on controls if tests of operating effectiveness indicate MODERATE level of control risk
Detection Risk (Plug-in Calculated by Auditor)
20.0%
HIGH extent of substantive testing
Audit Risk Model Formula:
Audit Risk = Inherent Risk × Control Risk × Detection Risk
AR
5.0%
=
IR
50.0%
×
CR
50.0%
×
DR
20.0%