A Detection Risk of 1

Multiple Choice

A detection risk of 1.5 or 150% means _______.

A) there would be a 150% risk that the auditors' procedures will not be effective in detecting a material misstatement
B) auditors will need to undertake 1.5 times the audit procedures planned in the initial stages of the audit
C) there would be a 150% risk that the auditors' procedures will be effective in detecting a material misstatement
D) auditors will perform extensive detailed testing of related account balances and use larger sample sizes because a 1.5 detection risk is a low detection risk