Which of the Following Is an Accurate Statement Regarding How

question 23

Multiple Choice

Which of the following is an accurate statement regarding how the acceptable risk of overreliance (ARO) and the acceptable risk of incorrect acceptance (ARIA) interact to affect evidence accumulation?

• A) If internal controls are likely to be effective, preliminary control risk can be increased.
• B) A lower control risk requires a lower ARO in testing the controls, which requires a smaller sample size.
• C) If controls are found to be effective, control risk can remain low, which permits the auditor to increase ARIA, thereby requiring a smaller sample size in the substantive tests of details of balances.
• D) If misstatements are considered unlikely, ARIA will decrease, and the sample size will also decrease.

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Definitions:

Post-Training Supplements

These are nutritional or informational resources provided after a training session to support recovery and enhance the effects of the training.

Purpose

The reason for which something is done or created or for which something exists.

Training Intervention

A Training Intervention is a structured program designed to improve performance and address specific skill gaps or needs among employees through targeted instruction.

Transfer

In an organizational context, this involves moving an employee from one position or location to another, which may be lateral or vertical, temporary or permanent.