Which of the following would be the likely risk results from using a 1% level of detection risk?
A)High detection risk and low audit risk.
B)High detection risk and high audit risk.
C)Low detection risk and high audit risk.
D)Low detection risk and low audit risk.

Question

Quizplus · Accepted Answer

Using a 1% level of detection risk means that the auditor is willing to accept a low risk of not detecting a material misstatement in the financial statements (low detection risk) which would result in a low risk of issuing an incorrect audit opinion (low audit risk).

Which of the Following Would Be the Likely Risk Results