Which component of the expanded audit risk model is most closely associated with the risk of incorrect acceptance?
A)Analytical procedures risk.
B)Risk of material misstatement.
C)Nonsampling risk.
D)Test of details risk.

Question

Quizplus · Accepted Answer

Test of details risk is associated with the risk of incorrect acceptance, as it involves the risk that the auditor will conclude that a material misstatement does not exist when it actually does, based on the audit tests performed.

Which Component of the Expanded Audit Risk Model Is Most