If the sample supports the conclusion that the recorded account balance is materially misstated when it is actually not materially misstated, this is the:
A) risk of assessing control risk too low.
B) risk of assessing control risk too high.
C) risk of incorrect acceptance.
D) risk of incorrect rejection.

Question

Quizplus · Accepted Answer

The risk of incorrect rejection refers to the risk that an auditor concludes that a material misstatement exists in a financial statement assertion when in fact it does not. This can lead to unnecessary additional work and testing by the auditor to substantiate their incorrect conclusion.

If the Sample Supports the Conclusion That the Recorded Account