Examlex

Solved

Acceptable Audit Risk (AAR) and Acceptable Risk of Incorrect Acceptance

question 49

True/False

Acceptable audit risk (AAR) and acceptable risk of incorrect acceptance (ARIA) are inversely related; that is, as AAR increases, ARIA decreases.


Definitions:

Climate Change

The man-made change in Earth’s climate from the accumulation of greenhouse gases caused by the use of fossil fuels.

Price Elasticity

A way to gauge how fluctuations in price affect a good's market demand.

Substitutes

Products or services that can replace each other in use, offering consumers alternatives.

Necessity

A necessity is a good or service that is considered essential for basic living and well-being, such as food, water, and shelter.

Related Questions