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:

Dual Processing

The principle that our minds operate on two different levels simultaneously: automatic, unconscious processing and conscious, deliberate processing.

Evolutionary Psychologists

Scientists who study the psychological adaptations of humans to the changing physical and social environment, often focusing on how evolution has shaped the mind and behavior.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which environment determines behavior, excluding mental processes.

Cognitive Neuroscientists

Scientists who specialize in studying the neural mechanisms underlying cognition, including thoughts, memories, and language.