If the Sample Supports the Conclusion That the Recorded Account

question 8

Multiple Choice

If the sample supports the conclusion that the recorded account balance is materially misstated when in fact it is, this is:

• A) the risk of incorrect acceptance.
• B) the risk of incorrect rejection.
• C) the correct decision.
• D) the risk of overreliance.

---

Definitions:

Reservoir

A large natural or artificial lake used for the storage and regulation of water, often for public water supply, hydroelectric power generation, or flood control.

Isostatic Rebound

The rise of land masses that were depressed by the huge weight of ice sheets during the last glacial period, through a process of readjustment.

Ice

Water frozen into a solid state, which can appear transparent or a more or less opaque bluish-white color, depending on the presence of impurities.

River Terraces

Step-like landforms alongside rivers, formed by the erosion of sediments and changes in water level.