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What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
Auditingmedium
AThe auditor concludes balance is materially correct when in actual fact it is not
The auditor concludes that the balance is materially misstated when in actual fact it not
CThe auditor has rejected an item for sample which was material
DNone of the above
Correct Answer: B. The auditor concludes that the balance is materially misstated when in actual fact it not
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