Week 3 - Detection Risk Flashcards
1
Q
How is detection risk different from the other two?
A
It is the only risk which is controllable from an auditor’s perspective
2
Q
Why will the level of detection risk adopted by the auditor be adjusted?
A
To reduce the overall risk to an acceptable level
3
Q
What does this rely on?
A
Relies on the auditor having a full understanding of the client’s financial capabilities and business risks facing the company
4
Q
If you change the detection risk, you still have to get…
A
Reliable, sufficient evidence
5
Q
A
