What type of relationship exists between audit risk and detection risk?
A)Direct.
B)Inverse.
C)Indirect.
D)No relationship.

Question

Quizplus · Accepted Answer

Audit risk and detection risk are inversely related. This means that as audit risk increases, detection risk decreases, and vice versa. This is because audit risk is the risk that the auditor will not detect a material misstatement in the financial statements, while detection risk is the risk that the auditor will not detect a misstatement that is material to the financial statements.

What Type of Relationship Exists Between Audit Risk and Detection