Question: When Arthur Andersen audited Enron, they should have recognized an acceptable level of detection risk is inversely related to the... 1. Assurance provided by substantive

When Arthur Andersen audited Enron, they should have recognized an acceptable level of detection risk is inversely related to the...

1. Assurance provided by substantive testing

2. Risk of misapplication of audit procedures

3. Risk of failing to discover material misstatements

4. Preliminary judgement about materiality levels.

Side notes: I believe 1 and 3 is wrong. Between 2 and 4, which is correct?

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