Which of the Following Is Not True with Respect to the Risk

question 86

Multiple Choice

Which of the following is not true with respect to the risk of incorrect rejection?

• A)Incorrect rejection occurs when the auditor concludes that the account balance is not fairly stated.
• B)The risk of incorrect rejection has an inverse relationship with sample size.
• C)The risk of incorrect rejection exposes the auditor to an efficiency loss.
• D)Incorrect rejection occurs when the true (but unknown)account balance is materially misstated.

---

Definitions:

Cyclical Scheduling

Involves creating a repeating schedule of operations or activities, commonly used in manufacturing or workforce management to ensure consistent production or availability.

Registered Nurses

are healthcare professionals who have met the requirements for registration and licensure to practice nursing.

Extra Capacity

Additional production or service ability that exceeds normal operations requirements.

Late Night Shift

A work shift that takes place during the late evening to early morning hours, often outside standard business hours.