The acceptable risk of assessing control risk too low (ARO)is a measure of the level of risk that:
A) is predicted by the statistical frequency table.
B) the auditor is willing to take.
C) is predicted by the random number 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. It is the level of risk at which the auditor is still willing to conclude that the control is effective, even though in reality it may not be. The ARO is a subjective measure and is based on the auditor's professional judgment and experience.

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