After Extrapolating the Results of Performing Substantive Tests on a Sample

question 43

Multiple Choice

After extrapolating the results of performing substantive tests on a sample of accounts from the accounts receivable subsidiary ledger,Allen CA 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:

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.

Positive Feelings

Emotions or sentiments that are good, favorable, and beneficial, contributing to positive mental health.

Moderate Stressors

Environmental or situational factors that cause a manageable level of stress, potentially leading to increased engagement and performance when appropriately handled.

Effort

The amount of energy exerted towards achieving a goal.