The acceptable level of detection risk is inversely related to the
A) Extent of the substantive procedures.
B) Risk of misapplying auditing procedures.
C) Overall materiality.
D) Risk of failing to discover material misstatements.

Question

Quizplus · Accepted Answer

The acceptable level of detection risk is inversely related to the extent of substantive procedures because as detection risk decreases, the extent of substantive procedures must increase to ensure that material misstatements are detected.

The Acceptable Level of Detection Risk Is Inversely Related to the