When detection risk for an assertion in the cash area is low, the auditor may perform all relevant tests at an interim date or well after year-end.

Question

Quizplus · Accepted Answer

When detection risk is low, it means the auditor believes there is a low risk that material misstatements will not be detected. In such cases, auditors may choose to perform tests closer to or at year-end to ensure they capture the most relevant and current information, rather than at an interim date or well after year-end.

When Detection Risk for an Assertion in the Cash Area