What would most effectively describe the risk of incorrect rejection in terms of substantive audit testing?

(a) The auditor has ascertained that the balance is materially correct when in actual fact it is not.

(b) The auditor has rejected an item from his or her sample and later found the item was materially incorrect.

(c) The auditor concludes that the balance is materially misstated when in actual fact it is not.

(d) The auditor decides to perform a predominantly compliance-based audit due to an evaluation that the controls were effective within the company. Midway through the audit, the auditor realises the controls are not good, and decides to expand substantive testing.

Choose the best answer.