Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 10

If tests of controls induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0 and audit risk (0.05) and inherent risk remain constant, the acceptable level of detection risk is most likely to
A) Change from 0.1 to 0.04.
B) Change from 0.2 to 0.3.
C) Change from 0.25 to 0.1.
D) Be unchanged.