Detection risk
- Term
- Detection risk
- Exam
- CISA
- Definition
The risk that the auditor's procedures fail to detect a material error.
- Explained
Detection risk is the only component of audit risk the auditor controls. It falls when the auditor uses larger samples, more reliable evidence, testing closer to period end or whole-population analytics. Questions asking how an auditor should respond to high inherent and control risk expect an answer that lowers detection risk.
- In practice
Increasing the sample from 25 to 60 items lowers detection risk.
- Often confused with
- Control risk
- Exam angle
Reduced by increasing the nature, timing or extent of testing.
- Related