What would most effectively describe the risk of incorrect acceptance in terms o

MCQ Practice

What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

Subject: AuditingTopic: Auditing

The auditor has ascertained that the balance is materially correct when in actual fact it is not

The auditor concludes the balance is materially misstated when in actual fact is not

The auditor has rejected an item from sample which was not supported by documentary evidence

He applies random sampling on data which is inaccurate and inconsistent

Correct Answer: A