Why Does the Risk of Incorrect Rejection Result in an Efficiency

question 77

Multiple Choice

Why does the risk of incorrect rejection result in an efficiency loss to the auditor?

• A)Additional time is necessary to propose adjustments to the client's account balances.
• B)The auditor typically expands the sample to examine additional components or transactions of the account balance.
• C)More detailed audit procedures are performed on sample items already examined by the auditor.
• D)The auditor typically extends the study of internal control to attempt to obtain a reduction in the level of risk of material misstatement.

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Definitions:

Operant Conditioning

An educational method where the intensity of an action is altered by either rewards or penalties.

Biological Urge

Innate impulses or drives that influence behavior, such as the needs for food, water, or sexual activity.

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol despite its negative effects on one's life.

Illogical Thinking

According to cognitive theories, illogical ways of thinking that may lead to self-defeating conclusions and psychological problems.