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When making a decision about the dollar amount in an account balance based on a sample, the audit team considers

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When making a decision about the dollar amount in an account balance based on a sample, the audit team considers the risk of incorrect acceptance to be more serious than the risk of incorrect rejection because
a. The incorrect rejection decision impairs the efficiency of the audit.
b. The audit team will do additional work and discover the misstatement of the incorrect decision.
c. The incorrect acceptance decision impairs the effectiveness of the audit.
d. Sufficient appropriate audit evidence will not have been obtained.

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a Incorrect While the risk of incorrect rejection does impact …View the full answer


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Auditing and Assurance Services

Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

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Question Posted: October 27, 2014 06:13:54
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