The Risk Model Is Defined as AR = IR ×

question 21

Multiple Choice

The risk model is defined as AR = IR × CR × DR. The risk of assessing control risk too low can lead to ________.

• A) the auditor performing more work than needed, thus wasting resources
• B) the auditor failing to do additional work that should be done
• C) poor choice of procedures
• D) expanding sample sizes required for statistical sampling of account balances