Posted: 07 Jan 2008 at 19:13 | IP Logged
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Is substative test direct related or inversely related to detection risk?
These two MC Questions confuses me, pls help
As the acceptable level of detection risk decreases, the assurance directly provided from:
(a) Tests of controls should increase.
(b) Tests of controls should decrease.
(c) Substantive tests should increase.
(d) Substantive tests should decrease.
The acceptable level of detection risk is inversely related to the:
(a) Assurance provided by substantive tests.
(b) Risk of misapplying auditing procedures
(c) Preliminary judgment about materiality levels.
(d) Risk of failing to discover material misstatements.
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