Which statement best defines the risk of incorrect acceptance in the context of substantive audit procedures?

Audit Evidence MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Audit Evidenceauditing-mcqs › audit-evidence
Published
27 Jul 2019
Last updated
28 May 2026

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Choose the correct answer

Explanation

Option A describes the risk of incorrect acceptance, where the auditor mistakenly believes the balance is materially correct despite it being misstated. Option B refers to the opposite error, known as incorrect rejection. Options C and D do not directly relate to the risk of incorrect acceptance.

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