Acceptable risk of incorrect acceptance is of greater concern to the auditor than acceptable risk of incorrect rejection.

Name: Acceptable risk of incorrect acceptance is of greater concern to the auditor than acceptable risk of incorrect rejection.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because incorrect acceptance could lead to the auditor giving an incorrect conclusion on the financial statements, whereas incorrect rejection only means a need for further testing or investigation.

Acceptable Risk of Incorrect Acceptance Is of Greater Concern to the Auditor