When Performing Substantive Procedures,auditors Run the Sampling Risk(s)of

question 18

Multiple Choice

When performing substantive procedures,auditors run the sampling risk(s) of

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

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Definitions:

Imposition

The act of establishing or applying something by authority or force, often referring to taxes, duties, or policies.

Tax

A necessary tax or other charge placed on individuals by a government agency, with the purpose of generating revenue for government operations and miscellaneous public outlays.

Tax Revenue

The income that is collected by governments through taxation, which supports public spending and services.

Government

The organization, or system by which a community or nation is governed, responsible for creating and enforcing laws.