An auditor discovers that an account balance believed not to be materially misstated based on an audit sample was materially misstated based on the total population of the account balance.This is an example of which of the following types of sampling risks?
A)Incorrect rejection.
B)Incorrect acceptance.
C)Assessing control risk too low.
D)Assessing control risk too high.

Question

Quizplus · Accepted Answer

This is an example of incorrect acceptance, where the auditor mistakenly accepts the account balance as not materially misstated based on the sample, but it turns out to be materially misstated when the entire population is considered.

An Auditor Discovers That an Account Balance Believed Not to Be