In the audit risk model, its risk components are either determined, assessed or manipulated. Which of the following risks are controllable by the auditor?
A) audit risk
B) control risk
C) detection risk
D) both audit risk and detection risk

Question

Quizplus · Accepted Answer

Detection risk is directly controllable by the auditor through the nature, timing, and extent of auditing procedures. Audit risk, being the risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated, is managed through the overall audit strategy and the manipulation of detection risk. Control risk, on the other hand, is related to the effectiveness of a client's internal controls and is not controllable by the auditor.

In the Audit Risk Model, Its Risk Components Are Either