As the acceptable level of detection risk increases, an auditor may change the:
A)assessed level of control risk from a lower level to a higher level.
B)assurance provided by tests of controls by using a larger sample size than planned.
C)timing of substantive procedures from year-end to an interim date.
D)nature of substantive procedures from less effective to more effective procedures.

Question

Quizplus · Accepted Answer

When the acceptable level of detection risk increases, it means the auditor is willing to accept a higher risk that they will not detect a material misstatement. This allows the auditor to perform some procedures at an interim date rather than waiting until year-end, as the increased risk tolerance can be offset by the benefits of earlier testing.

As the Acceptable Level of Detection Risk Increases, an Auditor