Question

Which type of risk does an auditor have control over through substantive auditing procedures?

a) Control Risk
b) detection risk
c) sufficiency risk
d) inherent risk

Answer 1

An auditor has control over b)detection risk through substantive auditing procedures.

Step-by-step explanation:

An auditor has control over the detection risk through substantive auditing procedures.

Detection risk is the risk that the auditor fails to detect a material misstatement in the financial statements even though an audit is conducted. The auditor can reduce this risk through thorough testing and analysis of the financial records and transactions.

On the other hand, the auditor does not have control over inherent risk (the risk of material misstatements in the financial statements before considering the effectiveness of internal controls) and control risk (the risk that a material misstatement could occur and not be prevented or detected in a timely manner by the entity's internal controls).