When performing sampling,the auditor is most concerned with which of the following?
A)Risk of incorrect rejection.
B)Risk of incorrect acceptance.
C)Risk of excess sample size.
D)Risk of errors in the population.

Question

Quizplus · Accepted Answer

The risk of incorrect acceptance is the most concerning because it could result in the auditor concluding the financial statements are materially correct when they are not, leading to unreliable audit opinions. Additionally, with incorrect acceptance, the auditor may fail to detect misstatements in the financial statements, leading to a failure to identify financial reporting errors or fraud. The risk of incorrect rejection relates to the auditor rejecting a sample that is actually representative of the population, while the risk of excess sample size refers to the auditor taking a sample size that is larger than necessary. The risk of errors in the population is a general concern but is not specific to sampling.

When Performing Sampling,the Auditor Is Most Concerned with Which of the Following