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

question 94

Multiple Choice

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

• A)It results in an efficiency loss to the auditor.
• B)It occurs when the auditor's sample indicates that the account balance is fairly stated.
• C)It occurs when the true misstatement in the account balance exceeds tolerable misstatement.
• D)The auditor can measure the exposure to this risk when using statistical sampling applications.

---

Definitions:

Integrity Vs. Despair

The final stage of Erik Erikson's theory of psychosocial development, where individuals reflect on their lives and either come to terms with their achievements or regret their failures.

Generativity Vs. Stagnation

Generativity vs. stagnation is a stage in Erik Erikson's theory of psychosocial development, where middle-aged adults face the challenge of contributing to society and the next generation or experience a sense of unproductiveness.

Identity Vs. Guilt

A stage in Erik Erikson's theory of psychosocial development where children age 3-6 years grapple with maintaining their sense of personal control and initiative vs. feelings of guilt for their actions.

Initiative Vs. Guilt

This term refers to one of Erik Erikson's stages of psychosocial development, in which children aged approximately 3 to 5 years learn to initiate activities and interact with others or experience guilt for their efforts and actions.