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

Question

Quizplus · Accepted Answer

According to the audit risk model, the acceptable audit risk and planned detection risk are inversely related, meaning when one is low, the other should be high. Therefore, if the acceptable audit risk is low and inherent risk and control risk are both low, planned detection risk should be high to ensure an acceptable level of audit risk.

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