If acceptable audit risk is low, and inherent risk and control risk are both high, then planned detection risk should be high.

Name: If acceptable audit risk is low, and inherent risk and control risk are both high, then planned detection risk should be high.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When acceptable audit risk is low, and both inherent risk and control risk are high, the auditor must reduce the planned detection risk to achieve an overall lower level of audit risk, meaning more substantive testing is needed, not less.

If Acceptable Audit Risk Is Low, and Inherent Risk and Control