The extent of evidence gathered during an audit is affected by the auditor's assessment of detection risk.

Question

Quizplus · Accepted Answer

Detection risk is the risk that the auditor may fail to detect a material misstatement in the financial statements. The higher the detection risk, the lower the required level of evidence, and vice versa. Therefore, the extent of evidence gathered during an audit is affected by the auditor's assessment of detection risk.

The Extent of Evidence Gathered During an Audit Is Affected