The Risk of Incorrect Acceptance and the Risk of Overreliance

question 44

Multiple Choice

The risk of incorrect acceptance and the risk of overreliance relate to the

• A) Preliminary estimates of materiality levels.
• B) Allowable risk of tolerable error.
• C) Efficiency of the audit.
• D) Effectiveness of the audit.

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Definitions:

Legitimization

The process of making something acceptable, justified, or seen as legitimate, often in a social, legal, or moral sense.

Power Differentials

The disparities in power between individuals or groups in a social hierarchy or structure.

Social Interaction

The process by which people act and react in relation to others, forming the basis of social relationships and structures.

Social Structure

The organized pattern of social relationships and social institutions that together constitute society, guiding and constraining individual behaviors.