After making a preliminary assessment of the risk of material misstatement during planning and beginning to apply audit procedures, an auditor determines that this risk is actually higher than anticipated. Which would be the most likely effect of this finding on the auditor's desired level of detection risk and the overall level of audit risk, as compared to the levels originally planned?

Auditor's Desired Level of Detection Risk

Overall Level of Audit Risk

1.

Decrease

Same

2.

Increase

Same

3.

Same

Higher