Which of the following is not true with respect to the risk of incorrect acceptance?
A) This risk provides the auditor an efficiency loss.
B) This risk results in the auditor's making an incorrect conclusion about the client's account balance or class of transactions.
C) This risk occurs when the sample results suggest that the account balance is fairly stated.
D) This risk is controlled by the auditor in determining sample size under monetary unit sampling (MUS).

Question

Quizplus · Accepted Answer

The risk of incorrect acceptance provides the auditor with an effectiveness loss, not an efficiency loss, as it may lead to the auditor incorrectly concluding that a material misstatement does not exist.

Which of the Following Is Not True with Respect to the Risk