While Performing an Audit of Accounts Receivable,R

question 36

Multiple Choice

While performing an audit of accounts receivable,R.Allen,CPA,found that the sample results supported the conclusion that the accounts receivable balance was materially misstated.However,the balance was,in fact,not materially misstated.This situation illustrates the risk of

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

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Definitions:

Pension

A type of retirement plan where an employee receives compensation from an employer after retirement.

Salaries

Regular payments made by an employer to an employee, usually monthly or biannually, for their services.

Employer

An entity or individual that hires and pays employees for their labor or services.

Piecewise Function

A function defined by multiple sub-functions, each applying to a certain interval of the main function's domain.