ACCA AA · Chapter 6 · Question 2 of 11
Which component of audit risk can the auditor directly control through the nature, timing and extent of audit procedures?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Detection risk
Explanation
Inherent risk and control risk exist independently of the audit and are assessed by the auditor. Detection risk, the risk that the auditor's procedures fail to detect a material misstatement, is managed by changing the procedures performed, for example by increasing sample sizes or performing work closer to the year end.
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