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Conceptually, confidence level (reliability), which is 1 - Acceptable Risk of Over-reliance (ARO), and audit risk in the audit risk model are conceptually very similar.

Conceptually, confidence level (reliability), which is 1 - Acceptable Risk of Over-reliance (ARO), and audit risk in the audit risk model are conceptually very similar. In addition, Tolerable Exception Rate (TER) and materiality in the risk model are conceptually very similar. Explain each of these statements and discuss why the two comparisons are similar.

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