Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A) If detection risk is high, significant substantive procedures are necessary to reduce detection risk.
• B) There is an inverse relation between the auditor's assessed risk of material misstatement and detection risk.
• C) There is no relation between the auditor's assessed risk of material misstatement and detection risk.
• D) If detection risk is low, only a small number of substantive procedures are necessary to reduce the detection risk.