It is easier and more common to implement increased evidence accumulation for inherent risk than for acceptable audit risk because:
A) inherent risk applies to the entire audit.
B) inherent risk can usually be isolated to specific accounts.
C) acceptable audit risk does not impact on the amount of evidence which must be accumulated.
D) acceptable audit risk and sample sizes are set statistically.

Question

Quizplus · Accepted Answer

Inherent risk can often be isolated to specific accounts or transactions, making it easier to adjust the amount of evidence needed for those areas specifically, unlike acceptable audit risk which is a broader concept affecting the entire audit approach.

It Is Easier and More Common to Implement Increased Evidence