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    Sample results for a test of transactions

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    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 materially misstated. It was, in fact, not materially misstated. The situation illustrates the risk of
    A) Incorrect rejection.
    B) Incorrect acceptance.
    C) Assessing control risk too high.
    D) Assessing control risk too low.

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    https://brainmass.com/business/external-auditing/sample-results-test-transactions-121180

    Solution Preview

    The risk of incorrect acceptance which is the risk of concluding from a sample that the book value is ...

    Solution Summary

    The solution explains about incorrect rejection and incorrect acceptance.

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