Which of the following risks expose the auditor to effectiveness losses?
A)Risk of underreliance,risk of incorrect acceptance.
B)Risk of overreliance,risk of incorrect rejection.
C)Risk of underreliance,risk of incorrect rejection.
D)Risk of overreliance,risk of incorrect acceptance.

Question

Quizplus · Accepted Answer

The risk of overreliance exposes the auditor to the risk of incorrect acceptance, where the auditor may rely too heavily on evidence that may not be reliable leading to an incorrect conclusion. This can result in the auditor missing a material misstatement. Both risks of overreliance and incorrect acceptance can lead to effectiveness losses for the auditor.

Which of the Following Risks Expose the Auditor to Effectiveness