After Extrapolating the Results of Performing Substantive Tests on a Sample

question 42

Multiple Choice

After extrapolating the results of performing substantive tests on a sample of accounts from the accounts receivable subsidiary ledger,Allen CPA concluded that the accounts receivable balance was materially misstated.In fact,the balance was materially correct.This situation illustrates the risk of ________.

• A)incorrect rejection
• B)incorrect acceptance
• C)assessing control risk too low
• D)assessing control risk too high

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Definitions:

China

A vast country located in East Asia, known for its rich history, cultural heritage, and as being one of the world's oldest civilizations.

Norway

A country located in Northern Europe, known for its extensive coastline, fjords, and northern lights.

South America

A continent located in the Western Hemisphere, mostly in the Southern Hemisphere, with a variety of climates, cultures, and geographies.

Weather Patterns

The typical sequences or combinations of weather conditions in a particular region, observed over different timescales.