What is the risk of incorrect rejection?
Risk of incorrect rejection is the risk that the sample allows for the auditor to conclude that the financial statements are materially misstated, when in fact they are not. This will affect the efficiency of audit procedures.
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What is risk of incorrect acceptance in audit sampling?
Risk of incorrect acceptance is the risk that the sample allows the auditor to conclude that financial statements are not materially misstated, when in fact they actually are. This will affect the effectiveness of the audit detecting existing material misstatements.