The Auditor Tested a Sample of Recorded Sales Invoices for Evidence

question 112

Multiple Choice

The auditor tested a sample of recorded sales invoices for evidence of credit approval.Based on the results of the sample,the auditor concluded that there was a satisfactory rate of approvals.Unknown to the auditor,credit approvals in the population were not satisfactory.This would be an example of the risk of

• A) Overreliance.
• B) Underreliance.
• C) Incorrect acceptance.
• D) Incorrect rejection.

---

Definitions:

Major Calyx

A structure in the kidney that collects urine from the minor calyces before it moves to the renal pelvis and ureter.

Suspensory Ligament

A fibrous tissue that connects the lens of the eye to the ciliary body, adjusting the lens shape for focusing.

Broad Ligament

A wide fold of peritoneum that connects the sides of the uterus to the walls and floor of the pelvis, supporting the uterus, ovaries, and fallopian tubes.

Renal Pelvis

The central part of the kidney where urine collects before moving to the ureter.