When Discussing Acceptable Audit Risk (AAR)and the Audit Risk Model

question 99

Multiple Choice

When discussing acceptable audit risk (AAR) and the audit risk model, which one of the following statements is true?

• A) The terms audit assurance, overall assurance. and level of assurance are synonyms for AAR.
• B) When the auditor decides on a lower acceptable audit risk, it means the auditor wants to be certain that the financial statements are not materially misstated.
• C) AAR is the risk that the auditor is willing to take that the financial statements are fairly stated after the audit is completed and an unqualified opinion has been reached.
• D) AAR is objectively determined by the auditor.

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Definitions:

Middle Adulthood

A stage of life typically considered to occur approximately between the ages of 40 to 65, characterized by stability, maturity, and increased responsibility.

Leading Cause

A leading cause refers to the primary or most significant factor contributing to a result or outcome, often used in the context of health to describe the top illness or condition resulting in morbidity or mortality.

Disease

A condition that negatively affects the structure or function of part or all of an organism, and that is not due to any external injury.

Sudden Infant Death Syndrome (SIDS)

The unexplained death of a seemingly healthy baby.