Final answer:
When holding other factors constant in an audit, the detection risk decreases.
Step-by-step explanation:
When you hold other factors such as the nature and timing of procedures constant in an audit, the detection risk decreases. Detection risk refers to the risk that the auditor fails to detect a material misstatement in the financial statements. By keeping other factors constant, the auditor can focus on the specific procedures being performed and reduce the risk of missing any important issues.
This happens because holding other factors constant allows the auditor to allocate more time and resources to thoroughly evaluate and test the specific procedures being used. By doing so, they can increase the effectiveness of the procedures and reduce the chance of any errors or misstatements going undetected.
Therefore, the correct answer to the question is D) The Detection Risk Decreases. The other options listed in the question (A) The Overall Audit Risk Increases, (B) The Audit Efficiency Decreases, and (C) The Effectiveness of Procedures Increases do not accurately represent the impact of holding other factors constant.