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10. Which of the following is true concerning the components of the audit risk model (i.e., ARIR X CR X DR? a. The auditor can change the level of AR by changing the level of IR directly b. The auditor can change the level of AR by changing the level of DR indirectly. c. The auditor can change the level of AR by changing the level of CR indirectly. d. The auditor can change the level of AR by changing the level of CR directly
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Answer #1

Solution: The auditor can change the level of AR by changing the level of CR indirectly

Explanation: In assessment of the Control Risk level, the auditor will assess the effectiveness of the internal control system of firm during his audit, for exampe through questionnaires. When the effectiveness of internal controls is control, the greater the frequency of error

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