Factual misstatements are detected when performing tests of details. True False Actual audit risk will exceed the (low) level established by the CPA firm when the auditor does not effectively manage detection risk. True False Olivia, your staff auditor, was assigned to determine overall materiality for the audit of a casino. She documented the following, "Since economic conditions affect the gambling industry as a whole, I calculated overall materiality for this engagement using current-year average revenue for the industry." This is a reasonable approach to calculating overall materiality for the casino's audit. True False