When Making a Decision About the Dollar Amount in an Account

question 120

Multiple Choice

When making a decision about the dollar amount in an account balance based on a sample,the audit team considers the risk of incorrect acceptance more serious than the risk of incorrect rejection because

• A) The incorrect rejection decision impairs the efficiency of the audit.
• B) The audit team will do additional work and discover the misstatement of the incorrect decision.
• C) The incorrect acceptance decision impairs the effectiveness of the audit.
• D) Sufficient appropriate audit evidence will not have been obtained.

---

Definitions:

Formal

Pertaining to a style of communication or appearance that adheres to established conventions, often characterized by professionalism and seriousness.

Autocorrect Functions

Software features that automatically correct spelling or typing errors in texts.

Social Media Messages

Information or content shared through online platforms designed to facilitate social interaction.

Three-Step Writing Process

A systematic approach to writing that includes planning, writing, and revising to create effective written communication.