An example of where the auditor will accept very low risk (low acceptable audit risk) is for an audit client having an initial public offering.

Name: An example of where the auditor will accept very low risk (low acceptable audit risk) is for an audit client having an initial public offering.
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In an initial public offering (IPO), the auditor will accept a very low risk because the financial statements will be scrutinized by regulators and investors, necessitating high accuracy and reliability.

An Example of Where the Auditor Will Accept Very Low