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Inherent Risk and Audit Evidence: Understanding the Impact on Audit Risk Models
Using the bucket analogy for our audit risk model, how does the inherent risk assessment impact the size of the bucket? Select the correct option. The lower the inherent risk, the larger the bucket of audit evidence needed Inherent risk has no impact on the size of the bucket of audit evidence needed The higher the inherent risk, the larger bucket of audit evidence needed

The higher the inherent risk, the larger the bucket of audit evidence needed.