Problem

When the audit risk is 0.015, inherent risk is 0.50, control risk is 0.30 (i.e., RMM = 0.1...

When the audit risk is 0.015, inherent risk is 0.50, control risk is 0.30 (i.e., RMM = 0.15), and analytical procedures risk is 0.50, the risk of incorrect acceptance is

A. 0.02.

B. 0.20.

C. 0.50.

D. 2.00.

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