Write short notes on Detection risk

Auditing and Assurance Revision Questions and Answers

Answer
It is the risk that an auditor‟s procedures will not detect a misstatement that exists in an account balance or class of transactions that could be material, individually or when aggregated with misstatements in other balances or classes. The level of detection risk relates directly to the auditor‟s procedures, some detection risk would always be present. Some detection risk would always be present even if an auditor were to examine 100 percent of the account balances.



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