Walter Polonia Was Explaining to His Junior Staff the Implications

Multiple Choice

Walter Polonia was explaining to his junior staff the implications of sampling risk when conducting substantive testing. He made the following two statements:
"If we conclude that a material misstatement does not exist when it does, then we have an increased control risk."
"If we conclude that a material misstatement exists when it does not we have an inefficient audit."
Which statements, if any, were true?

A) (i)
B) (ii)
C) (i) and (ii)
D) neither (i) or (ii)