Acceptable risk of incorrect acceptance (ARIA) is directly related to the computed precision interval in difference estimation; that is, as ARIA increases, the computed precision interval decreases.

Question

Quizplus · Accepted Answer

The statement is incorrect. ARIA refers to the maximum risk that an auditor is willing to take of accepting a population that has a deviation rate higher than the tolerable deviation rate. It is not directly related to the computed precision interval in difference estimation. As ARIA increases, the auditor is willing to accept a higher level of risk, which means that the precision interval should increase (i.e., become wider) to accommodate the acceptable level of risk.

Acceptable Risk of Incorrect Acceptance (ARIA) Is Directly Related to the Computed