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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