You Are Auditing Nelson and Company and Determined That the Sample

question 68

Multiple Choice

You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of

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

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Definitions:

Transtheoretical Model

A theory of behavioral change that describes five stages individuals go through to change their behavior: precontemplation, contemplation, preparation, action, and maintenance.

Maintenance

The ongoing care or upkeep of systems, equipment, or property to ensure continued functioning and prevention of degradation or failure.

Precontemplation

The stage in which individuals are not yet considering a change in their behavior or are unaware of the need for change.

Contemplation

The action of thinking deeply or considering something carefully over a period of time.