You Are Auditing Nelson and Company and Determined That the Sample

question 68

Multiple Choice

You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of

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

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Definitions:

Significant Influences

Major factors or individuals that have a profound impact on one's thoughts, behaviors, or life direction.

Long Periods

Extensive intervals of time that may be significant in understanding behavior patterns, development, or effects.

Positive Illusions

Slightly unrealistic or overly optimistic beliefs about oneself, others, or the world that can have protective mental health benefits.

Stress-Vulnerability

A model suggesting that the development of psychiatric disorders results from the interaction between individual vulnerability (genetic, biological) and external stressors.