Risk of Incorrect Acceptance Is Defined as _______

question 89

Multiple Choice

Risk of incorrect acceptance is defined as _______.

• A)the risk that the auditor concludes that a material misstatement does not exist when it does exist
• B)the risk that the auditor concludes that a material misstatement does exist when it does exist
• C)the risk that an audit firm incorrectly accepts a client
• D)the risk that an audit firm incorrectly issued an unmodified opinion

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Definitions:

Arbitration

A method of dispute resolution in which an impartial third party makes a decision that is usually binding.

Mediation

A form of dispute resolution where a neutral third party assists the parties in reaching a mutually acceptable agreement.

Legal Audits

The process of reviewing and verifying the legal compliance and risks of a company or organization.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in everyday life.