Which of the following statements is correct?
A)the auditor controls detection risk by the amount of substantive testing he or she does
B)the auditor controls inherent risk by the amount of control testing he or she does
C)the auditor controls control risk by the amount of control testing he or she does
D)the auditor controls audit risk by the amount of substantive testing he or she does

Question

Quizplus · Accepted Answer

Detection risk is the risk that the auditor will not detect a material misstatement that exists in an assertion. The auditor can control this risk by adjusting the amount of substantive testing performed. The other types of risks mentioned (inherent risk, control risk, and audit risk) are not directly controlled by the amount of testing the auditor does.

Which of the Following Statements Is Correct