The acceptable risk of assessing control risk too low (ARO) is a measure of the level of risk that:
A) the auditor is willing to take.
B) is predicted by the random number table.
C) is predicted by the statistical frequency table.
D) is generated as a result of the auditor's knowledge of the true population deviation rate.

Question

Quizplus · Accepted Answer

The acceptable risk of assessing control risk too low (ARO) is a measure of the level of risk that the auditor is willing to take. This means that the auditor has a level of risk that they are comfortable with and are willing to accept. This risk is based on the auditor's professional judgment and experience.

The Acceptable Risk of Assessing Control Risk Too Low (ARO)