The Risk of Incorrect Acceptance and the Risk of Overreliance

question 32

Multiple Choice

The risk of incorrect acceptance and the risk of overreliance (Type II Errors) relate to the:

• A)preliminary estimates of materiality levels.
• B)allowable risk of tolerable error.
• C)efficiency of the audit.
• D)effectiveness of the audit.

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Definitions:

Libido

A term used in psychoanalytic theory to denote the sexual or life drive, often manifested as sexual energy.

Superego

A component of Sigmund Freud's psychoanalytic theory representing the ethical or moral part of the psyche, which controls or inhibits the impulses of the id based on societal norms.

Psychosocial Theory

A theoretical framework developed by Erik Erikson that outlines stages of psychological and social development from infancy to adulthood, emphasizing the importance of social interactions and experiences.

Erikson

Pertains to Erik Erikson, a developmental psychologist recognized for his theory regarding psychosocial development throughout an individual's life.