The Auditor Tested a Sample of Recorded Sales Invoices for Evidence

question 58

Multiple Choice

The auditor tested a sample of recorded sales invoices for evidence of credit approval.Based on the results of the sample,the auditor concluded that there was a satisfactory rate of approvals.Unknown to the auditor,credit approvals in the population were not satisfactory.This would be an example of:

• A)Risk of overreliance.
• B)Risk of underreliance.
• C)Risk of incorrect acceptance.
• D)Risk of incorrect rejection.

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Definitions:

Dictatorial Regimes

Dictatorial regimes are governments ruled by a single leader or a small group of individuals who exercise absolute power, often suppressing opposition, controlling the media, and limiting personal freedoms.

Wendell Willkie

An American lawyer and corporate executive who ran as the Republican presidential candidate against Franklin D. Roosevelt in 1940, advocating for liberal principles.

Adolf Hitler

The leader of Nazi Germany from 1933 to 1945, whose regime was responsible for the outbreak of World War II and the atrocities of the Holocaust.

Lame Duck Amendment

The 20th Amendment to the U.S. Constitution, which shortened the period between the election and inauguration days to reduce the power of outgoing officials.