the risk of incorrect acceptance (RIA).Which of the following is true about RIR and RIA?
A)RIR is of greater concern to the auditor than the RIA.
B)RIA is of greater concern to the auditor than the RIR.
C)RIA and the RIR are of equal importance to the auditor.
D)Neither the RIR nor the RIA need be considered by the auditor.

Question

Quizplus · Accepted Answer

RIA is of greater concern to the auditor than RIR, as it represents the risk of accepting a financial statement assertion as true when it is actually false. This could lead the auditor to issue an incorrect opinion, which could have significant consequences. RIR, on the other hand, represents the risk of rejecting a financial statement assertion as true when it is actually true, which would lead to additional audit work but is less consequential than issuing an incorrect opinion. Therefore, RIA is of greater importance to the auditor.

The Risk of Incorrect Acceptance (RIA)