The Auditor Selects 25 Invoices for Testing and Detects No

Multiple Choice

The auditor selects 25 invoices for testing and detects no errors. As a result, she concludes that the expense account is fairly stated. Unbeknown to the auditor, the client has altered some of the invoices to reduce the amount reported as expense. This is an example of:

A) an efficiency problem.
B) incorrect acceptance.
C) a sampling error.
D) Both b and c.