An organization's accounts payable function improved its internal controls significantly after it received an unsatisfactory audit report.
When planning a follow-up audit of the function, what level of detection risk should be expected if the audit and sampling procedures used are unchanged from the prior audit?
When planning a follow-up audit, if the audit and sampling procedures remain unchanged from the prior audit, the level of detection risk should remain unchanged as well. Detection risk refers to the risk that the auditor’s procedures will not detect a material misstatement that exists. Since the procedures are unchanged, the likelihood of detecting any misstatements remains the same, even though the control risk has been lowered due to the improved internal controls.
didnt understand the logic behind the answer
The detection risk is unchanged as the audit and sampling procedures remains the same. The control risk is lower since they have improved on their internal controls significantly.