If inherent risk and control risk are both assessed as low, detection risk will be:
A) low.
B) high.
C) the same as audit risk.
D) medium.

Question

Quizplus · Accepted Answer

When inherent risk and control risk are both assessed as low, the auditor can accept a higher detection risk because the overall risk of material misstatement is lower. This means the auditor can reduce the extent of substantive testing.

If Inherent Risk and Control Risk Are Both Assessed as Low