The situation and circumstances can dictate the level of certain risks no matter what the auditor does. However, the auditor is always able to decide to reduce one of the following risks:
A) control risk.
B) risk of management fraud.
C) detection risk.
D) inherent risk.

Question

Quizplus · Accepted Answer

The auditor can only control the detection risk by adjusting the nature, timing, and extent of substantive procedures. Control risk, risk of management fraud, and inherent risk are all determined by factors outside the auditor's control, such as the effectiveness of internal controls and the integrity of management.

The Situation and Circumstances Can Dictate the Level of Certain