If the auditor decides to reduce acceptable audit risk,planned detection risk
A)increases.
B)decreases.
C)stay the same.
D)cannot be determined.

Question

Quizplus · Accepted Answer

When acceptable audit risk is decreased, the auditor's overall level of assurance increases. To maintain this increased level of assurance, the auditor will need to decrease planned detection risk. Therefore, reducing acceptable audit risk results in a decrease in planned detection risk.

If the Auditor Decides to Reduce Acceptable Audit Risk,planned Detection