Why Does the Risk of Incorrect Rejection Result in an Efficiency

question 77

Multiple Choice

Why does the risk of incorrect rejection result in an efficiency loss to the auditor?

• A)Additional time is necessary to propose adjustments to the client's account balances.
• B)The auditor typically expands the sample to examine additional components or transactions of the account balance.
• C)More detailed audit procedures are performed on sample items already examined by the auditor.
• D)The auditor typically extends the study of internal control to attempt to obtain a reduction in the level of risk of material misstatement.

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Definitions:

Value Equilibrium

A conceptual state where differing values or interests reach a balance or harmony.

Just Punishment

Punishment deemed fair and appropriate for the crime committed, considering both the act and its consequences.

Steffen (2012)

Likely references a specific scholarly work or study by an author named Steffen in the year 2012, requiring further context to specify its content.

Demise of Rehabilitation

The decline or reduction in emphasis on rehabilitation as a primary goal in the criminal justice system, often in favor of punitive approaches.