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What is meant by âlowering detection riskâ in auditing? A practitioner (or simply auditor) performing audit engagement is required to reduce audit risk to such level that is suitable to provide reasonable assurance to the intended users.
But if risk of material misstatement is lower then auditor can relax and may apply lesser detective procedures which also means increased detection risk. That is why audit risk is defined as the function of risk of material misstatement and detection risk and have inverse relationship.