Detection risk has inverse relationship with inherent and control risk. Hence, if the entity has high inherent and control risk, detection risk would be kept at a lower level as to achieve the planned level of audit and collection of evidence. To indicate: Whether the given statement is true or false.

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Chapter 7, Problem 26MCQ

To determine

Concept introduction: Detection risk has inverse relationship with inherent and control risk. Hence, if the entity has high inherent and control risk, detection risk would be kept at a lower level as to achieve the planned level of audit and collection of evidence.

To indicate:Whether the given statement is true or false.

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