Because control risk and inherent risk vary from cycle to cycle,account to account,or objective to objective,
A)acceptable audit risk must also change.
B)planned detection risk and required audit evidence will also vary.
C)planned detection risk will vary but audit evidence will remain constant.
D)planned detection risk will remain constant but audit evidence will vary.

Question

Quizplus · Accepted Answer

Planned detection risk and required audit evidence must be adjusted in response to changes in control risk and inherent risk. If these risks increase, the auditor must lower planned detection risk by obtaining more reliable evidence. Conversely, if these risks decrease, the auditor can accept a higher planned detection risk and obtain less extensive evidence. Acceptable audit risk is typically set by the auditor's client, and should not be adjusted in response to changes in risk.

Because Control Risk and Inherent Risk Vary from Cycle to Cycle,account