ARACR is normally lower for a public company audit than a private company audit.

Question

Quizplus · Accepted Answer

ARACR (Audit Risk Assessment and Control Risk) is lower for a public company audit than a private company audit because public companies are subject to more regulatory scrutiny, have more public disclosure requirements, and tend to have stronger internal controls due to their larger size and resources. This means that there is a lower risk of material misstatement in the financial statements of a public company compared to a private company.

ARACR Is Normally Lower for a Public Company Audit Than