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Hello sir, in the management threats that are in part 3 of chapter 4 is that correct what is written that safeguards that increase the risk of detection or is it decrease the correct or I am misunderstanding it? Thank you in advance/
Whatmis,written is correct. Threats must be reduced to acceptable elvels amd amything which increases the chance (or risk) of detection helps.
Don’t we want the detection risk to be low in order to have the total audit risk low? Doesn’t that mean that we want the risk of detection to decrease?
Thismphrase is using English is a different way – and that might confuse.
When we look at audit risk, detection risk means the risk of NOT detecting a problem ie the risk of the bad thing happening and we want that to be low.
When the notes talked about the risk of detecting auditors taking part in the managememt of the company we want detection to happen with a high probability ie we are talking about the chance that the good thing happens.
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