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Consider the following statement: When inherent and control risk are assessed as high, the risk of material misstatement is assessed as high, and an auditor
Consider the following statement: When inherent and control risk are assessed as high, the risk of material misstatement is assessed as high, and an auditor will set detection risk as low to reduce audit risk to an acceptably low level. Explain what it means to set detection risk as low. What does this mean for the operation of the audit?
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