Detection risk is within the auditor's control: it is reduced by changing the nature, timing and extent of procedures. Where the risk of material misstatement is high, acceptable detection risk is kept low.
Source: BDS 200
Related terms
Audit riskThe risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated.Substantive proceduresTests of details and analytical procedures performed on account balances, transactions and disclosures to detect material misstatements in the financial statements.Audit samplingApplying audit procedures to some rather than all of the items in an account or class of transactions in order to reach a conclusion about the whole population.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 31, 2026 · This definition is for general information only.