Under the risk-based reasoning (RBR)system of risk-based reasoning for accounting estimates,in the ignore region,the probability of payoff is 1.00 to (one minus acceptable AccR).

Question

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In the risk-based reasoning (RBR) system for accounting estimates, the "ignore region" does not imply a probability of payoff of 1.00 to (one minus acceptable AccR). Instead, the ignore region refers to a range of outcomes where the risk of material misstatement is considered low enough that no further audit attention is warranted. The specific probabilities associated with the ignore region would not be described in this manner.

Under the Risk-Based Reasoning (RBR)system of Risk-Based Reasoning for Accounting