The Primary Factor Affecting the Auditor's Decision About Acceptable Risk

question 125

True/False

The primary factor affecting the auditor's decision about acceptable risk of incorrect acceptance (ARIA) is assessed inherent risk.

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Definitions:

Legal Power

The authority granted to an entity or individual by the law to perform certain actions or enforce decisions.

Acceptance

In contract law, the act of agreeing to the terms of an offer, thereby creating a binding contract.

Offeree's Duty

The legal obligations or responsibilities of a person or entity to whom an offer is made, especially in contract formation.

Imposed

Set or laid as a burden, duty, tax, or penalty; usually applied or enforced authoritatively.