Acceptable audit risk and acceptable risk of incorrect acceptance are inversely related; that is, as AAR increases, ARIA decreases.

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Acceptable audit risk (AAR) and the risk of incorrect acceptance (also known as the acceptable risk of incorrect acceptance, ARIA) are not directly related in the manner described. AAR pertains to the auditor's willingness to accept that the financial statements may be materially misstated after the audit is completed, while ARIA is related to the risk that the auditor concludes that a material misstatement does not exist in an assertion when, in fact, it does. Changes in one do not inversely affect the other in a direct manner; they are managed independently based on the auditor's assessment of risk and the desired level of assurance.

Acceptable Audit Risk and Acceptable Risk of Incorrect Acceptance Are