The risk that the auditor concludes that a material misstatement exists when it does not is called

risk of incorrect rejection.

risk of incorrect acceptance.

risk of incorrect valuation.

risk of incorrect statement.

Your answer is incorrect.

With a manufacturer, wholesaler, or retailer

inherent risk for inventory may be assessed at or near the minimum.

inherent risk for inventory may be assessed at or near the maximum.

inventory is typically a major part of a client's assets, and thus is not audited.

inventory is not typically a major part of a client's assets, and thus is not audited.