Which of the following is not true with respect to the risk of incorrect acceptance?
A)This risk provides the auditor with an efficiency loss.
B)This risk results in the auditor 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 results in an effectiveness loss, not an efficiency loss, as it leads to the auditor accepting a materially misstated account balance.

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