When Performing the Substantive Tests on an Account Balance,the Auditor

When performing the substantive tests on an account balance,the auditor is concerned about two aspects of sampling-based decision errors: (1) the risk of incorrect rejection (RIR) and (2) the risk of incorrect acceptance (RIA) .Which of the following is true about RIR and RIA?

A) RIR is of greater concern to the auditor than the RIA.
B) RIA is of greater concern to the auditor than the RIR.
C) RIA and the RIR are of equal importance to the auditor.
D) Neither the RIR nor the RIA need be considered by the auditor.

Correct Answer:

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