In the audit risk model the auditor manipulates detection risk based upon an assessment of inherent and control risk to maintain an acceptably low audit risk.

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Quizplus · Accepted Answer

This statement is true. The audit risk model states that audit risk is a function of inherent risk, control risk, and detection risk. The auditor can manipulate detection risk to maintain an acceptable level of audit risk, which is typically a low level. The auditor assesses inherent and control risk to determine the level of detection risk that is required.

In the Audit Risk Model the Auditor Manipulates Detection Risk