Why does the risk of incorrect rejection result in an efficiency loss to the aud

Question

Why does the risk of incorrect rejection result in an efficiency loss to the auditor?

A. Additional time is necessary to propose adjustments to the client's account balances.

B. The auditor typically expands the sample to examine additional components or transactions of the account balance.

C. More detailed audit procedures are performed on sample items already examined by the auditor.

D. The auditor typically extends the study of internal control to attempt to obtain a reduction in the level of risk of material misstatement.

Explanation / Answer

(b)The auditor typically expands the sample to examine additional components or transactions of the account balance.

the whole audit is based on sample size of the population selected.

if the sample is inappropriately selected which is not representing the whole population and audit is based on the inapproprate sample selected it would definetely causes inefficiency.

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