D is corrent because detection risk is restricted by the auditor’s substantive procedures. As the acceptable level of detection risk decreases, assurance provided by substantive procedures must increase. Increased assurance can be obtained by modifying the nature, timing and/or extent of the substantive procedures.
A is incorrect because substantive procedures will not decrease.
B is incorrect because the acceptable level of detection risk is based largely on the assessed levels of control risk and inherent risk. Accordingly, any tests of controls will already have been performed.
B is incorrect because the acceptable level of detection risk is based largely on the assessed levels of control risk and inherent risk. Accordingly, any tests of controls will already have been performed.
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