Which of the Following Statements Regarding the Risk-Based Reasoning (RBR)matrix

question 44

Multiple Choice

Which of the following statements regarding the risk-based reasoning (RBR) matrix is FALSE?

• A)The RBR matrix is an attempt to summarize all the possibilities of accounting uncertainties that an auditor may encounter and classify them by reporting types.
• B)The RBR matrix focuses on AudR levels.
• C)Under the RBR system of risk-based reasoning for accounting estimates,there are three possible ranges or regions of probabilities of payoffs to consider.
• D)The main use of the RBR matrix is to provide a convenient decision aid for any reporting situation involving future events.