Revision of the planned level of detection risk will be necessary whenever:
A) accounts are affected by more than one transaction class.
B) the multiple control risk assessments for the same account balance assertion differ.
C) the lower assessed control risk approach is used.
D) the final assessed control risk does not support the planned level.
E) the final assessed control risk is not the same as the actual level.

Question

Quizplus · Accepted Answer

The need to revise the planned level of detection risk arises when the final assessed control risk does not support the planned level, indicating that the initial risk assessments were not accurate, necessitating adjustments to the audit plan to ensure sufficient audit evidence is obtained.

Revision of the Planned Level of Detection Risk Will Be