Which of the following is true with respect to the risk of incorrect acceptance?
A) The risk of incorrect acceptance is determined in the planning stages of the audit prior to the study of internal control.
B) The risk of incorrect acceptance has an inverse relationship with sample size.
C) The risk of incorrect acceptance exposes the auditor to an efficiency loss.
D) The risk of incorrect acceptance may occur when the true (but unknown) account balance is fairly stated.
Correct Answer:
Verified
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