Detection risk is the risk that the auditor will not detect material misstatements in the accounts.To limit detection risk to an acceptable level, the auditor
A)Performs substantive tests.
B)Tests controls.
C)Gains an understanding of the internal control system.
D)Applies statistical methods.

Question

Quizplus · Accepted Answer

Performing substantive tests helps the auditor directly verify the accuracy of account balances and transactions, thereby reducing detection risk.

Detection Risk Is the Risk That the Auditor Will Not