When auditing account balances, why is an incorrect acceptance decision considered more serious than an incorrect rejection

Question:

When auditing account balances, why is an incorrect acceptance decision considered more serious than an incorrect rejection decision?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing An International Approach

ISBN: 978-0071051415

6th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

See More Books

Question Posted: Jan 09, 2015 09:36 AM

See More Questions

When auditing account balances of liabilities, auditors are most concerned with managements assertion about a. Existence. b. Rights and obligations. c. Completeness. d. Valuation and allocation.
Why is the risk of incorrect acceptance considered more critical than the risk of incorrect rejection in connection with audit decisions about an account balance?
When will silence be considered an acceptance of an offer?
1. What responsibility does an organization have to ensure that its suppliers and business partners behave ethically? To whom is this responsibility owed? 2. How can an organization monitor the...
As a small group, discuss the following statement: "Regression is such a basic technique that it should always be used in analyzing data."
Hart Corporation's net income was $\$ 400,000$ in 2010 and $\$ 160,000$ in 2011. What percentage increase in net income must Hart achieve in 2012 to offset the decline in profits in 2011? a. \(60...
2-10. En qu consiste la fase de implementacin del proceso de marketing estratgico ?
The following information is known about a project a. Draw the network diagram for this project. b. Determine the critical path and project duration c. Calculate the slack for eachactivity Activity...
Salut Industries, a small, tamiy-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cont driven have been estimated for...
The numbers of faculty at 32 randomly selected state-controlled colleges and universities with enrollment under 12,000 students are shown below. Use these data to estimate the mean number of faculty...
In test of controls auditing, why should auditors be more concerned with the risk of assessing the control risk too low than with that of assessing it too high?
What should be the relationship between tolerable misstatement in the audit of an account balance and the amount of monetary misstatement considered material to the overall financial statements?
In Problems 510, determine the viewing window used. NORMAL FLOAT AUTO REAL RADIAN MP 10- 32 0 9
You are required to work with your groups for the restaurant business that you have created and develop your international market entry strategy. Please follow the below steps: STEP 1: Research the...
Demonstrate to the owner of the business how they could use e-commerce for example (Shopify, E-Bay, Etsy), social media for example (Facebook, Instagram, TikTok, Webpage) to market their business to...
Identify a company that has successfully created a brand image for their product or service by using social media. Explain how they did it . Which forms of media did they use?
The Magic that Makes Customer Experiences Stick Article Identify and explain in details Roger's Five Factors as it applies to the diffusion process.
Topic: Buick in China Task: After reading and viewing the items in this week's Reading & Study folder, identify and describe the following: the social and cultural aspects that made China attractive...
A special purpose financial report is one that relates to: A. Non-financial information. B. Reports that must comply with approved accounting standards. C. Entities that are not reporting entities....
Which of the following streaming TV devices does not involve use of a remote controller? A) Google Chromecast B) Apple TV C) Amazon Fire TV D) Roku
A company is considering purchasing a new piece of machinery at a cost $$60,000.$ It is expected to generate revenues of $$20,000$ per year for 4 years against $$3,000$ of annual operating...
What is contained in a set of completed audit files?
How can related party transactions affect the financial statements?
When auditing the year-end balance of interest-bearing notes payable, which account are the auditors most likely to audit at the same time? a. Interest income. b. Interest expense. c. Amortization of...
C0 = 10.648148 b) ( 4 Marks ) As of now, Given the above conditions on the option, what is the intrinsic value of the call option? What is the time value of the call option?
interest revenue 19,500 retained earning,end 5,000 selling expenses 145,00 prepaid insurance 20,000 loss and disposal of a business (discountied),net 28,000 income from operation 140,000 unearned...
cost that do not extend the acid capacity or it's useful life, but merely maintained the assd, or restore it to working order are recorded as losses True or False

When auditing account balances, why is an incorrect acceptance decision considered more serious than an incorrect rejection

Question:

Step by Step Answer:

An incorrect acceptance decision directly impairs the effectiveness of ...View the full answer

Auditing An International Approach

Students also viewed these Auditing questions