Detection risk

This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.

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April 5, 2017 at 12:48 pm #380184
Anuja Nair
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Hi sir, could you explain how the following scenario below could INCREASE detection risk ?

Scenario: The auditor is relying on tests of controls and reducing substantive procedures accordingly.
April 5, 2017 at 6:43 pm #380210
Ken Garrett
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The auditors will be relying more on controls and less on detection to keep audit risk low. If pess audit work is done, detection risk rises, but audit risk shouldn’t.
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