Question

Refer to Exhibit 8.3 and determine which of the following terms matches this definition: the risk that the auditor will conclude that the state of internal controls is effective when internal controls are actually not effective.a. The risk of incorrect acceptance of internal control reliability.b. The risk of incorrect acceptance of book value.c. The risk of incorrect rejection of internal control reliability.d. The risk of incorrect rejection of book value.

Answer 1

A. The risk of incorrect acceptance of internal control reliability.