An auditor uses the Audit Risk Model (AR = IR x CR x DR) to plan the audit. If the auditor assesses Inherent Risk (IR) as High and Control Risk (CR) as High, how must the auditor manipulate Detection Risk (DR) to maintain a low overall Audit Risk?

Detection Risk is the risk that the auditor fails to detect a misstatement. It is the only component the auditor controls. When the Risk of Material Misstatement (IR x CR) is high, the auditor must set Detection Risk low to hold overall Audit Risk at an acceptable level. Lower Detection Risk requires more effective, more extensive, or closer-to-year-end substantive procedures.