Which of the following is a correct statement?
A) When internal controls are effective, control risk can be reduced, and therefore the auditor will decrease the ARIA.
B) There is a direct relationship between ARIA and the required sample size.
C) A lower control risk requires a lower ARO in testing the controls.
D) ARO measures the auditor's desired assurance for an account balance.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is a correct statement?
A) When internal controls are effective, control risk can be reduced, and therefore the auditor will decrease the ARIA.
B) There is a direct relationship between ARIA and the required sample size.
C) A lower control risk requires a lower ARO in testing the controls.
D) ARO measures the auditor's desired assurance for an account balance.

Which of the Following Is a Correct Statement