Why Does the Risk of Incorrect Rejection Result in an Efficiency

question 77

Multiple Choice

Why does the risk of incorrect rejection result in an efficiency loss to the auditor?

• A)Additional time is necessary to propose adjustments to the client's account balances.
• B)The auditor typically expands the sample to examine additional components or transactions of the account balance.
• C)More detailed audit procedures are performed on sample items already examined by the auditor.
• D)The auditor typically extends the study of internal control to attempt to obtain a reduction in the level of risk of material misstatement.

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Definitions:

Cognitive Restructuring

A psychiatric therapeutic process aiming to help individuals recognize and change negative or irrational thought patterns.

Self-Preoccupation

An excessive or exclusive focus on oneself, one's feelings, thoughts, or concerns, often neglecting external factors or the perspectives of others.

Defensiveness

An excessive concern with protecting oneself from being hurt.

Ambushing

A tactic in communication or debate where one listens to the speaker with the intent to attack or counter their arguments rather than to understand.