Which of the following statements is incorrect?
A) When detection risk is set as high, an auditor will require a high level of confidence that the transactions and accounts are not materially misstated.
B) An auditor may decide to stratify the population before selecting a sample from it.
C) An auditor will use professional judgment to determine the tolerable error and required level of confidence.
D) An auditor will use professional judgment when considering what would be considered an error within the population tested.

Question

Quizplus · Accepted Answer

When detection risk is set as high, the auditor will require a low (not high) level of confidence that the transactions and accounts are not materially misstated. This is because when detection risk is high, the auditor is relying more heavily on substantive procedures to detect material misstatements, and thus a lower level of confidence is sufficient.

Which of the Following Statements Is Incorrect