The risks of incorrect acceptance in variables sampling and of assessing control risk too low in attributes sampling both relate to
A) Effectiveness of an audit.
B) Efficiency of an audit.
C) Control risk assessment decisions.
D) Evidence about assertions in financial statements.

Question

Quizplus · Accepted Answer

Both risks relate to the effectiveness of an audit. Incorrect acceptance in variables sampling means that the auditor may have failed to detect a material misstatement, which would affect the overall effectiveness of the audit. Similarly, assessing control risk too low in attributes sampling means that the auditor may have relied on controls that were not effective, leading to a failure to detect material misstatements and a less effective audit.

The Risks of Incorrect Acceptance in Variables Sampling and of Assessing