The auditor can set detection risk as high if _________.

inherent risk and control risk are low

inherent risk is high and control risk is low

inherent risk and control risk are high

inherent risk is low and control risk is high

What are tests of controls?

Audit controls for developing an audit plan that details the nature, extent, and timing of audit procedures to be performed.

Audit procedures designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.

Audit procedures designed for the determining the amount of time spent testing the clients internal controls and conducting detailed testing of transactions and account balances.

Audit timelines of when audit activities occur for the audit of a client that uses a calendar year-end.

Auditors are willing to accept a higher risk that their audit procedures may not detect a material misstatement ________.

when control risk is high

when control risk is low

when detection risk is high

when detection risk is low