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:

Learning

The process of acquiring knowledge or skills through study, experience, or teaching.

Mental Set

A frame of mind involving an established way of thinking, either due to habit or a desire to maintain a perceived efficiency in approaching problems.

Household Repairs

Household repairs involve fixing or mending various systems or structures within a home, addressing issues related to plumbing, electrical wiring, or structural damage.

Means-End Analysis

A problem-solving strategy that involves breaking down the problem into smaller parts and addressing these parts to reach the desired goal.