Audit-risk equation:
AAR = IR × CR × DRCORRECT
BAR = IR + CR + DR
CAR = IR − DR
DAR = IR × CR ÷ DR
ACCAAudit & Assurance
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Why the answer is A, and why the others tempt you.
AR = IR × CR × DR. Auditor manages DR (via amount/timing of work) to keep AR acceptably low.
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