For a given assertion, the relationship between the level of detection risk (DR) and assessed control risk (CR) and inherent risk (IR) is shown correctly in which of the following, where + means increase, - means decrease:
A) +DR if +CR and +IR.
B) +DR if -CR and -IR.
C) +DR if +CR and -IR.
D) +DR if -CR and +IR.

Question

Quizplus · Accepted Answer

Detection risk (DR) increases when control risk (CR) and inherent risk (IR) decrease, as auditors can afford to accept a higher detection risk when the assessed risks are lower.

For a Given Assertion, the Relationship Between the Level of Detection