As the acceptable level of detection risk decreases, the assurance directly provided from:

Question

Quizplus · Accepted Answer

Choice "A" is correct. As the acceptable level of detection risk (the risk that an auditor will not detect a material misstatement that exists in an assertion) decreases, the assurance directly provided from substantive tests should increase. The level of detection risk will decline as the benefit of direct tests increases. Choice "B" is incorrect. If the assurance directly provided from substantive tests decreased, detection risk would increase because the direct tests have become less beneficial. Choices "C" and "D" are incorrect. Changing the extent of tests of controls does not affect the level of detection risk.

As the Acceptable Level of Detection Risk Decreases, the Assurance