The Risk That an Auditor Will Conclude, Based on Substantive

question 10

Multiple Choice

The risk that an auditor will conclude, based on substantive tests, that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:

• A) sampling risk.
• B) detection risk.
• C) non-sampling risk.
• D) inherent risk.

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Definitions:

Older Adults

Individuals who are in the later stage of life, typically those aged 65 and older.

Rural Areas

Regions characterized by low population density, often agricultural or undeveloped lands, distinguished from urban or suburban areas.

Handicap Accessible

Environments, facilities, or services designed to be usable by individuals with disabilities, ensuring inclusivity and accessibility.

Residential Community

A living area where people reside in close proximity to one another and often share common values or goals; it may include amenities and services for the residents.