While Performing a Substantive Test of Details During an Audit

question 28

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 not materially misstated. It was, in fact, materially misstated. 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:

Moved Away

The act of leaving a specific place or position to go to another location.

First Day

The initial day of a particular period or event.

Conclusion

A conclusion is a statement in an argument that logically follows from the premises offered in support of it; it's what the argument is trying to prove or establish.

Drywall

A building material used for making walls and ceilings, consisting of large flat sheets of gypsum board that is easy to install and paint.