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

Detection risk is the only risk that the auditor has direct control over. By increasing the amount of substantive testing and audit procedures, the auditor can reduce detection risk. Control risk, inherent risk, and risk of management fraud are all related to the entity and its environment, which are outside of the auditor's control. Therefore, the best choice is C) Detection risk.

The Situation and Circumstances Can Dictate the Level of Certain