9 Which of the following is true concerning the relationship

9. Which of the following is true concerning the relationship among audit risk (specifically the detection risk), materiality (specifically the materiality threshold) and evidence (specifically the amount of evidence)? a. Holding materiality constant, a higher audit risk will increase the amount of evidence. b. Holding audit risk constant, a lower materiality will increase the amount of evidence. c. Holding the amount of evidence constant, a higher materiality will increase audit risk. d. Holding both audit risk and materiality constant, no amount of evidence is gathered.

Solution

9. Option B is correct.

Firstly we need to know that materiality and audit evidence hold an iverse relationship, similarly audit risk and audit evidence are inversely related.

When the audit risk is held constant, if you lower the materiality level, then amount audit evidence must definitely increase.