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Question 4. Audit risk model (6 points) 1. How is ARIA reflected in the audit risk model? ( 2 points) 2. In testing the balance
Question 4. Audit risk model (6 points)
1. How is ARIA reflected in the audit risk model? ( 2 points)
2. In testing the balance of accounts receivable, the auditor estimated the upper bound misstatement (that is, overstatement) of the population of accounts receivable to be $80,000, and the tolerable misstatement for this account is $84,000. The auditor used an ARIA of 10% in the sampling test. Please provide the conclusion that an auditor will make based on the above information. (4 points)
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