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

Question

Quizplus · Accepted Answer

Increasing the acceptable level of detection risk allows an auditor to perform substantive tests at an interim date rather than at year-end, as the auditor is willing to accept a higher risk that the procedures will not detect a material misstatement.

As the Acceptable Level of Detection Risk Increases, an Auditor