When Brenda discovered she had a low risk client with low inherent risk and low control risk, how did she set her detection risk?
A) low
B) high
C) medium
D) detection risk is not related to inherent risk and control risk

Question

Quizplus · Accepted Answer

Since the client has low inherent risk and low control risk, Brenda can set a higher detection risk without sacrificing audit quality. This means that Brenda can reduce the level of testing and still obtain the same level of assurance, which makes the audit more efficient and cost-effective. Therefore, the best choice would be to set the detection risk as high.

When Brenda Discovered She Had a Low Risk Client with Low