When Evaluating the Results of Substantive Audit Procedures, Auditors Run

question 20

Multiple Choice

When evaluating the results of substantive audit procedures, auditors run the sampling risk(s) of

• A)Assessing control risk too high or too low.
• B)Incorrect acceptance and incorrect rejection of the population.
• C)Assessing control risk too low only.
• D)Incorrect acceptance of the population only.

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Definitions:

Personal Attribution

A psychological concept referring to how individuals explain causes of behavior and events, often attributing them to personal characteristics rather than external circumstances.

Situational Attribution

The process of inferring that external circumstances, rather than internal character traits, are responsible for an individual's behavior in a given situation.

Primacy Effect

The inclination to recall facts at the start of a list more effectively than the details that come afterward.

Prisoner's Dilemma

A scenario in game theory where two individuals acting in their own self-interest do not produce the optimal outcome for either party.