The greatest impact on audit effectiveness comes from the risk(s) of:
A)underreliance and incorrect rejection.
B)overreliance and incorrect acceptance.
C)underreliance and incorrect acceptance.
D)overreliance and incorrect rejection.

Question

Quizplus · Accepted Answer

Overreliance and incorrect acceptance pose the greatest risk to audit effectiveness because they may lead auditors to conclude that controls are effective or that financial statements are fairly stated when they are not, potentially resulting in undetected material misstatements.

The Greatest Impact on Audit Effectiveness Comes from the Risk(s)