Which of the Following Is True with Respect to the Risk

question 27

Multiple Choice

Which of the following is true with respect to the risk of incorrect acceptance?

• A)The risk of incorrect acceptance is determined in the planning stages of the audit prior to the study of internal control.
• B)The risk of incorrect acceptance has an inverse relationship with sample size.
• C)The risk of incorrect acceptance exposes the auditor to an efficiency loss.
• D)The risk of incorrect acceptance may occur when the true (but unknown)account balance is fairly stated.

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Definitions:

Sensory-Acute

Highly sensitive or sharply responsive to sensory stimuli.

Age-Related

Refers to aspects or changes that naturally occur as part of the aging process.

Biological Changes

Alterations in physiological processes or structures that occur over time in living organisms as part of growth, development, or aging.