What Type of Relationship Exists Between Audit Risk and Detection

question 72

Multiple Choice

What type of relationship exists between audit risk and detection risk?

• A)Direct.
• B)Inverse.
• C)Indirect.
• D)No relationship.

---

Definitions:

Consumer Price Index

A metric tracking the average evolution over time in the expenditure of urban consumers on a designated selection of consumer goods and services.

Base Year

A specific year against which economic variables are measured and compared in indices or other economic calculations.

Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, changing over time to reflect the cost of living.

Inflation

An economic condition characterized by an overall increase in prices and decrease in the purchasing value of money.