Acceptable risk of incorrect rejection affects auditors' action only when they conclude that a population is
A) fairly stated.
B) acceptable.
C) not fairly stated.
D) acceptable after certain adjustments.

Question

Quizplus · Accepted Answer

The acceptable risk of incorrect rejection only affects auditors' action when they conclude that a population is not fairly stated. This is because in such a case, auditors may need to increase the sample size or apply more rigorous audit procedures to reduce the risk of overlooking material misstatements. If the population is fairly stated, auditors do not need to take additional action related to the acceptable risk of incorrect rejection.

Acceptable Risk of Incorrect Rejection Affects Auditors' Action Only When