While performing an audit of accounts receivable,Allen,CPA,found that the sample results supported the conclusion that the accounts receivable balance was materially misstated.However,the balance was,in fact,not materially misstated.This situation illustrates the risk of
A) incorrect rejection.
B) incorrect acceptance.
C) assessing control risk too low.
D) assessing control risk too high.

Question

Quizplus · Accepted Answer

This situation illustrates the risk of incorrect rejection, where the auditor concludes that a balance is materially misstated when it is not, leading to unnecessary additional audit work.

While Performing an Audit of Accounts Receivable,Allen,CPA,found That the Sample