Why Is the Auditor More Concerned with Controlling the Exposure

question 100

Multiple Choice

Why is the auditor more concerned with controlling the exposure to the risk of incorrect acceptance than with the risk of incorrect rejection?

• A)Only the risk of incorrect acceptance results in an incorrect decision by the auditor.
• B)The risk of incorrect rejection is not related to the auditor's substantive procedures.
• C)The risk of incorrect rejection can be controlled by performing substantive procedures during the interim period.
• D)The risk of incorrect acceptance may ultimately result in the auditor incorrectly issuing an unmodified opinion on the client's financial statements.

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Definitions:

Human Resource Management

The strategic approach to the effective management of people in an organization, focusing on enhancing their contributions to the success of the organization.

Organisations

Groups of people structured in a specific way to achieve common goals or undertake particular activities, often through a coordinated effort.

Human Resource Specialists

Professionals who are focused on the management of organizational human resources, encompassing recruitment, training, employee relations, and benefits administration.

Role

is the function or part played by a person or thing in a particular situation or context.