When choosing the appropriate acceptable risk of overreliance, the auditor needs to
A) rely on his/her professional judgment.
B) err on the side of conservatism.
C) consult the professional standards.
D) follow SEC guidelines.

Question

Quizplus · Accepted Answer

The appropriate acceptable risk of overreliance is a matter of professional judgment for the auditor. The auditor needs to assess the risk factors and use their professional judgment to determine the level of acceptable risk. Therefore, the best choice is to rely on his/her professional judgment. The other options may provide some guidance, but they do not dictate the appropriate level of acceptable risk.

When Choosing the Appropriate Acceptable Risk of Overreliance, the Auditor