The acceptable risk of overreliance
A) is the risk that the auditor will erroneously conclude that the controls are less effective than they actually are.
B) is less of a concern to the auditors than the risk of underreliance.
C) represents the auditor's measure of sampling risk.
D) is determined by a statistical formula, and not by professional judgment.

Question

Quizplus · Accepted Answer

The acceptable risk of overreliance represents the auditor's measure of sampling risk, which is the risk that the auditor's conclusion based on a sample may be different from the conclusion they would reach if they examined every item in the population. This is a key concept in audit sampling and risk assessment.

The Acceptable Risk of Overreliance