After Extrapolating the Results of Performing Substantive Tests on a Sample

question 42

Multiple Choice

After extrapolating the results of performing substantive tests on a sample of accounts from the accounts receivable subsidiary ledger,Allen CPA concluded that the accounts receivable balance was materially misstated.In fact,the balance was materially correct.This situation illustrates the risk of ________.

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

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Definitions:

Homophobia

The dislike, fear, or prejudice against homosexual individuals, often resulting in discrimination.

Discriminated

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, affecting opportunities and esteem.

Gays And Lesbians

Individuals who identify as homosexual, being romantically or sexually attracted to people of the same sex.

Adverse Consequences

Negative outcomes or harmful effects resulting from an action or condition.