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The objective of the paper is to analyze the relation between materiality level and the audit risk. The presence of this relation comes from International Standard on Auditing ISA 200 "Overall Objectives of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing”. In accordance with ISA 200, the audit risk may be considered as if it consists of two components: risk of material misstatement and detection risk. Authors have mathematically demonstrated that the de...