While Performing a Substantive Test of Details During an Audit

question 16

Multiple Choice

While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. It was, in fact, not materially misstated. Such a situation illustrates the risk of:

• A)incorrect rejection.
• B)incorrect acceptance.
• C)assessing control risk too high.
• D)assessing control risk too low.

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Definitions:

Indirect Voting

A voting process where citizens elect representatives who then vote on behalf of them in the selection of government officials or policy decisions.

Electoral College

A body of electors established by the United States Constitution, which formally selects the President and Vice President based on the popular vote in each state.

Open Primary

A primary election in which voters are not required to declare party affiliation and can choose to participate in any party's primary.

Closed Primary

A type of primary election where only registered party members can vote for their party's candidates.