What Is Risk of Incorrect Acceptance

question 123

Multiple Choice

What is risk of incorrect acceptance?

• 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 exists when it does not exist.
• C)The risk that the auditor concludes that a material misstatement does not exist when it actually does not.
• D)The risk that the auditor concludes that a material misstatement exists when it actually does.

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Definitions:

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