Q
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
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A
A. The auditor concludes balance is materially correct when in actual fact it is not
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B
B. The auditor concludes that the balance is materially misstated when in actual fact it not
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C
C. The auditor has rejected an item for sample which was material
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D
D. None of the above
Correct Answer:
B. B. The auditor concludes that the balance is materially misstated when in actual fact it not
