What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

A. The auditor concludes balance is materially correct when in actual fact it is not
B. The auditor concludes that the balance is materially misstated when in actual fact it not
C. The auditor has rejected an item for sample which was material
D. None of the above

Correct Answer: The auditor concludes that the balance is materially misstated when in actual fact it not ✔

Last Updated: July 27, 2019