The risk of incorrect acceptance relates to the
A) effectiveness of the audit.
B) efficiency of the audit.
C) preliminary estimate of materiality.
D) allowable risk of tolerable misstatement.

Question

Quizplus · Accepted Answer

The risk of incorrect acceptance affects the effectiveness of the audit because it refers to the possibility that the auditor may conclude that a material misstatement does not exist when it actually does, leading to an ineffective audit.

The Risk of Incorrect Acceptance Relates to the