As the acceptable level of detection risk decreases, the assurance directly provided from:
A)substantive tests should increase.
B)substantive tests should decrease.
C)tests of controls should increase.
D)tests of controls should decrease.

Question

Quizplus · Accepted Answer

As the acceptable level of detection risk decreases, the auditor needs to increase the level of assurance provided. This can be achieved through increasing the extent or scope of substantive tests, which provide evidence about the accuracy and completeness of the financial statements. Therefore, the correct choice is A.

As the Acceptable Level of Detection Risk Decreases, the Assurance