Risk of incorrect rejection is defined as _______. the risk that the auditor concludes that a material misstatement does not exist when it does exist the risk that the auditor concludes that a material misstatement exists when it does not exist the risk that an auditor incorrectly rejects a client the risk that management may reject the audit opinion issued by the auditor An advantage of statistical sampling _______. is that it allows an auditor to measure control risk is that it allows an auditor to measure sampling risk is that it allows an auditor to measure inherent risk is that it is cheaper to perform, resulting in lower audit fees for the client

Risk of incorrect rejection is defined as the risk that the auditor concludes that a…

Answered: aterial misstatement exists when it…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Risk of incorrect rejection is defined as _______.

		the risk that the auditor concludes that a material misstatement does not exist when it does exist
		the risk that the auditor concludes that a material misstatement exists when it does not exist
		the risk that an auditor incorrectly rejects a client
		the risk that management may reject the audit opinion issued by the auditor

An advantage of statistical sampling _______.

		is that it allows an auditor to measure control risk
		is that it allows an auditor to measure sampling risk
		is that it allows an auditor to measure inherent risk
		is that it is cheaper to perform, resulting in lower audit fees for the client

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