Multiple Choice
Which of the following is not true with respect to the risk of incorrect rejection?
A) Incorrect rejection occurs when the auditor concludes that the account balance is not fairly stated.
B) The risk of incorrect rejection has an inverse relationship with sample size.
C) The risk of incorrect rejection exposes the auditor to an efficiency loss.
D) Incorrect rejection occurs when the true (but unknown) account balance is materially misstated.
Correct Answer:
Verified
Correct Answer:
Verified
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