If the statistical confidence level is 90 percent,the test of details (TD)risk is 10 percent.

Question

Quizplus · Accepted Answer

A 90 percent statistical confidence level means that there is a 10 percent chance of making a type I error (incorrectly rejecting a null hypothesis). The TD risk refers to the risk of failing to detect a material misstatement in a specific account balance or class of transactions. Therefore, the TD risk can be set at 10 percent if the statistical confidence level is 90 percent.

If the Statistical Confidence Level Is 90 Percent,the Test of Details