Wednesday, 13 January 2016

Audit Detection Risk

 Audit Detection Risk

Auditor could not detect the misstatement in the financial statement by applying audit procedures. It relates to effectiveness and application of audit procedures.

Types of Detection Risks

The major types of detection risk is that
1.    Selection of inappropriate audit procedure
2.    Wrong application of audit procedure
3.    Wrong interpretation of audit results

Lowering Detection Risk

Detection risk may be lowered by adequate planning, assigning professionals, professional skepticism and effective supervisor & review.


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