In the audit risk model,if an audit team wanted to keep audit risk at a low level but there was a great inherent risk of material misstatement and the internal control was ineffective,then procedures would need to be designed so that
A) Detection risk was at a low level.
B) Detection risk was at a high level.
C) Control risk was at a low level.
D) Inherent risk was at a high level.

Question

Quizplus · Accepted Answer

If there is a high inherent risk and ineffective internal control, the audit team would need to compensate by performing more extensive procedures to lower detection risk (the risk that material misstatements are not detected by audit procedures). Keeping detection risk at a low level would allow the audit team to achieve a lower overall audit risk despite the high inherent risk and ineffective internal control.

In the Audit Risk Model,if an Audit Team Wanted to Keep