While Performing a Substantive Test of Details During an Audit

question 16

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 materially misstated. It was, in fact, not materially misstated. Such a situation illustrates the risk of:

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

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Definitions:

Commuter Marriages

Relationships in which both spouses live and work in different geographical areas, necessitating travel and living apart for certain periods.

Prosperous Professionals

Individuals who have attained significant success and wealth in their professional careers.

Dual-Career

Pertaining to families or partnerships where both individuals pursue professional career paths concurrently.

Symbolic Interaction

A sociological perspective focusing on the ways in which individuals interact through symbols like words, gestures, and actions to create social reality.