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:

Guthrie Test

A screening test for newborns to detect metabolic disorders, using a blood sample from the baby's heel.

PKU

Phenylketonuria, a genetic disorder leading to the buildup of phenylalanine in the body, causing intellectual disability and other health issues if untreated.

Congenital Hypothyroidism

A condition present at birth where the thyroid gland doesn't produce enough thyroid hormone, leading to growth and developmental delays.

Phenylketonuria

A genetic disorder characterized by an inability to metabolize the amino acid phenylalanine, leading to brain and developmental issues.