While Performing a Substantive Test of Details During an Audit,the

question 44

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.This situation illustrates the risk of:

• A)Incorrect acceptance.
• B)Incorrect rejection.
• C)Assessing control risk too high.
• D)Assessing control risk too low.

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Definitions:

Breach of Contract

The failure to perform any term of a contract, agreement, or obligation without a legitimate legal excuse.

Unlicensed Professional

A professional practicing without the required legal authorization or license.

Breach of Contract

The failure to perform any term of a contract, agreement, or promise without a legitimate legal excuse.

Innocent Misrepresentation

A false statement made by someone who honestly believes it to be true, impacting a contract or agreement.