Auditors want a low audit risk of 5% and a low detection risk of 5%.In order to achieve this, what will inherent risk and control risk have to be?
A)100% for both
B)1% for inherent risk and 100% for control risk
C)1% for both
D)The risks cannot be determined because there is not enough information.

Question

Quizplus · Accepted Answer

Inherent risk and control risk must be 100% for both to achieve a low audit risk of 5% and a low detection risk of 5%, as audit risk is a product of inherent risk, control risk, and detection risk.

Auditors Want a Low Audit Risk of 5% and a Low