Planned detection risk I. determines the amount of substantive evidence the auditor plans to accumulate.
II) is dependent on inherent risk and business risk.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question

Quizplus · Accepted Answer

Planned detection risk is solely related to the amount of substantive evidence the auditor plans to accumulate and does not depend on inherent risk or business risk. Inherent risk and business risk are used to determine the appropriate level of acceptable audit risk, which in turn helps determine the planned detection risk.

Planned Detection Risk I