Which of the following statements best describes what is meant by a 1% level of detection risk?
A)High detection risk and low audit risk.
B)High detection risk and high audit risk.
C)Low detection risk and high audit risk.
D)Low detection risk and low audit risk.

Question

Quizplus · Accepted Answer

A 1% level of detection risk indicates a low detection risk, meaning the auditor is willing to accept only a 1% chance of not detecting a material misstatement, which corresponds to a low overall audit risk.

Which of the Following Statements Best Describes What Is Meant