05 March 2012
What are meant by the following? 1.Risk of under reliance, 2.Risk of over reliance, 3.Risk of incorrect rejection, and 4.Risk of incorrect acceptance.
Guest
Guest
(Expert)
05 March 2012
Risk of under reliance- placing less reliance than what is required on a certain audit evidence. Risk of over reliance- placing more reliance than what is required on a certain audit evidence. Risk of incorrect rejection- rejecting a genuine audit evidence as false when it is true. Risk of incorrect acceptance- accepting an ingenuine audit evidence as true when it is fasle.
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