Acceptable Risk of Assessing Control Risk Too Low (ARO)is the Auditor's

question 13

Multiple Choice

Acceptable risk of assessing control risk too low (ARO) is the auditor's measure of:

• A) non-sampling risk.
• B) inherent risk.
• C) control risk.
• D) sampling risk.

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Definitions:

Return on Equity

A measure of a company's profitability, indicating how much profit a company generates with the money shareholders have invested.

Year 2

Typically refers to the second year of an entity's operations, plan, or financial reporting.

Return on Equity

A measure of a corporation's profitability, expressed as a percentage of the total amount of equity.

Year 2

Referring to the second year in a given context, often referring to financial or operational timelines.