The Risk Model Is Defined as AR = IR 

question 26

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