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Audit Risk model - if the auditor accepts a higher detection risk, this means:
ASubstantive procedures will be more extensive
BIR × CR was assessed as low, so substantive procedures can be less extensive
CIR × CR was assessed as high
DThe audit will take longer
Answer & Solution
Correct answer: C. IR × CR was assessed as high
1. Higher DR is acceptable when IR × CR is assessed lower.
2. Less extensive substantive procedures are appropriate when DR is permitted to be higher.
3. This is the inverse relationship from SA 200.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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