What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

Audit Evidence Auditing Mcqs 23/08/2024

A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
B. The auditor concludes the balance is materially misstated when in actual fact is not
C. The auditor has rejected an item from sample which was not supported by documentary evidence
D. He applies random sampling on data which is inaccurate and inconsistent

Related Mcqs:

    In an audit of financial statements, substantive tests are audit procedures that___________?
    A. may be eliminated for an account balance under certain conditions B. are designed to discover significant subsequent events C. will increase proportionately when the auditor decreases the assessed level of control risk D. may be test of transactions, test of balance and analytical procedures...
    The nature, timing and extent of substantive procedures is _________ related to assessed level of control risk?
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    Which of the following affects audit effectiveness?
    A. Risk of over reliance B. Risk of incorrect rejection C. Risk of incorrect acceptance D. Both A. and C....
    Which of the following statements is not true with respect to management representations obtained as per AAS­11?
    A. Authenticated copy of relevant minutes of meetings may be regarded as management representation B. It should always be in working C. It may be dated prior to the report date D. It should be addressed to the auditor...
    Which of the following factors is most important in determining the appropriations of audit evidence?
    A. The reliability of audit evidence and its relevance in meeting the audit objective B. The objectivity and integrity of the auditor C. The quantity of audit evidence D. The independence of the source of evidence...

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