Q
What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?
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A
A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
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B
B. The auditor concludes the balance is materially misstated when in actual fact is not
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C
C. The auditor has rejected an item from sample which was not supported by documentary evidence
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D
D. He applies random sampling on data which is inaccurate and inconsistent
Correct Answer:
A. A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
