An auditor may decide to increase the risk of incorrect rejection when:
A)Increased reliability from the sample is desired.
B)Many differences are expected.
C)Initial sample results do not support the planned level of control risk.
D)The cost and effort of selecting additional items is low.

Question

Quizplus · Accepted Answer

Increasing the risk of incorrect rejection means that the auditor is willing to accept a higher likelihood of concluding that a control is not effective when it actually is. This can be acceptable when the cost and effort of selecting additional items is low, as it allows the auditor to obtain more evidence without significant additional resources. Options A and B refer to increasing the reliability of the sample and are reasons to decrease the risk of incorrect rejection. Option C refers to a situation where the initial sample results indicate that the planned level of control risk is too low, which would require the auditor to increase the sample size or change the nature of the tests performed, but not necessarily to increase the risk of incorrect rejection.

An Auditor May Decide to Increase the Risk of Incorrect