Detection risk refers to the likelihood that the audit procedures performed by the auditor fail to identify a material misstatement in the financial statements. This risk is influenced by the design and execution of audit procedures, including their adequacy and timing. As you evaluate the effectiveness of audit strategies, consider the following: Which of the listed actions would most likely reduce the level of detection risk?

Question $2$Answer

a$.$

Reducing the level of inherent risk through risk assessment.

b$.$

Increasing the experience level and skills of an audit client's staff.

c$.$

Performing additional substantive testing.

d$.$

Relying more heavily on the client$$s internal controls.

e$.$

Limiting the use of professional judgment.