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 will 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