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The auditor has planned an audit program for testing as follows: Materiality is $350K AR = RMM x DR, AR (Low) = RMM (Moderate) x
The auditor has planned an audit program for testing as follows:
- Materiality is $350K
- AR = RMM x DR,
- AR (Low) = RMM (Moderate) x DR (Moderate) (Current setting by the audit team, based on information above.)
Suppose that the engagement partner changes the planned AR to Moderate & RMM is Low.
What is the effect on Detection Risk? _____________________________________. (Fill in the Blank)
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