Using the Audit Risk Model: If Audit Risk Is 0

question 41

True/False

Using the audit risk model: If audit risk is 0.05,inherent risk is 1.0,control risk is 0.20,and analytical procedures risk is 1.0,the risk of incorrect acceptance is 0.25.

---

Definitions:

Administrative Law

The branch of law that governs the activities and operations of government agencies, including rulemaking, enforcement, and adjudication.

Administrative Procedure Act

A United States federal law that governs the way administrative agencies of the federal government may propose and establish regulations.

Judicial Review

The power of courts to declare void laws and executive actions that they find to be unconstitutional, maintaining a check on government power.

Administrative Remedies

Legal measures that can be taken within the confines of a government agency's rules and regulations, often before seeking judicial intervention.