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.

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Definitions:

Administrative Strategy

A plan of action designed to achieve specific goals within an organization through the efficient use of resources and processes.

Government Accountability Office

An independent, nonpartisan agency that works for the U.S. Congress to audit government expenditures and ensure federal funds are used efficiently and effectively.

Executive Orders

Executive Orders are directives issued by the President of the United States to manage operations of the federal government.

Office of Management

A governmental department or agency, often at the federal level, responsible for overseeing the administration of policy, budgeting, and organizational management.