[Parthamis]

What is the difference between these two?

It’s for AUD in a TBS related to sampling.

Also, Risk of assessing control risk too low vs. Risk of incorrect acceptance… HUH?!

[Bourne]

Risk of assessing control risk too low – you're relying on the internal controls more than you should be. As a result, you're performing less tests. You'll complete an ineffective audit.

Risk of incorrect acceptance – you're accepting a balance as being fairly stated, when in reality it is not. Wrong conclusion reached/ineffective audit.

Risk of incorrect rejection – you're rejecting the balance as being fairly stated when in reality, it is fairly stated. Effective audit, but inefficient.

Risk of assessing control risk too high – you're under-relying on internal controls, completing more tests, and conducting an audit inefficiently but effective.

[Parthamis]

so incorrect acceptance/rejection refers to the account balance… and risk of assessing CR too high/low refers to reliance of internal control.

Thank You!

[Author]

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