Why Is the Auditor More Concerned with the Risk of Overreliance

question 90

Multiple Choice

Why is the auditor more concerned with the risk of overreliance than the risk of underreliance?

• A)The risk of underreliance is not a type of sampling risk.
• B)The risk of overreliance exposes the auditor to an efficiency loss.
• C)The risk of overreliance may result in the auditor failing to perform sufficient substantive procedures.
• D)The risk of overreliance cannot be controlled by the auditor during the sampling process.

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Definitions:

Minimize Costs

Strategies or actions taken to reduce expenses and financial outlays in business operations or personal budgets.

Hochschild

Arlie Russell Hochschild, a sociologist known for her research on emotions, gender roles, and the division of labor in families and workplaces.

Bill Collectors

Individuals or agencies responsible for pursuing the collection of debts owed by individuals or businesses.

Debtors

Individuals or entities that owe money to others, typically arising from borrowing funds to finance activities, purchases, or investments.