The Risk the Auditor Is Willing to Take of Accepting

question 24

Multiple Choice

The risk the auditor is willing to take of accepting a balance as correct when the true error in the balance is greater than the tolerable misstatement is the:

• A) lower bound.
• B) allowable risk of incorrect acceptance.
• C) tolerable risk.
• D) upper bound.

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Definitions:

Filter-Feeders

Organisms that feed by straining suspended matter and food particles from water, commonly found in aquatic environments.

Toxins

Poisonous substances produced by living organisms, often causing disease when entered into the body at sufficient quantities.

Earthworms

Invertebrate animals belonging to the class Oligochaeta, known for their role in aerating the soil and enhancing soil fertility through their digestion process.

Marine Annelids

Worm-like organisms that live in marine environments, part of the phylum Annelida, known for their segmented bodies.