While Performing a Substantive Test of Details During an Audit

question 28

Multiple Choice

While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was not materially misstated. It was, in fact, materially misstated. 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:

Racial Composition

The makeup or distribution of different racial groups within a population or defined area.

Ethnic Composition

The makeup or distribution of various ethnic groups within a community, region, or country.

Marketspace

A digital or virtual environment where buying and selling activities occur, facilitated by information technology.

Electronic Commerce

Conducting transactions involving the exchange of goods and services or the movement of funds and data, chiefly over an electronic network like the internet.