Practice mode Audit Evidence

In substantive testing, what best describes the risk of incorrect rejection?

Correct answer C. The auditor concludes a balance is materially misstated when in fact it is not

Explanation

Incorrect rejection is a sampling error that wrongly finds a fairly stated balance to be misstated, harming efficiency by prompting unnecessary extra work.

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Answer checked 11 October 2026 How we write and check questions

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In substantive testing, what best describes the risk of incorrect rejection?

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In substantive testing, what best describes the risk of incorrect rejection?

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