Which of the Following Is True with Respect to the Risk

question 27

Multiple Choice

Which of the following is true with respect to the risk of incorrect acceptance?

• A)The risk of incorrect acceptance is determined in the planning stages of the audit prior to the study of internal control.
• B)The risk of incorrect acceptance has an inverse relationship with sample size.
• C)The risk of incorrect acceptance exposes the auditor to an efficiency loss.
• D)The risk of incorrect acceptance may occur when the true (but unknown)account balance is fairly stated.

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Definitions:

Idea

A concept or mental impression.

Fun

An experience of amusement or enjoyment.

Idea

An idea refers to a thought, conception, or notion that exists in the mind as a result of mental understanding, awareness, or activity.

Connective

Logical operators that join statements or propositions in logical expressions, such as "and", "or", and "not".