Several risks are inherent in the evaluation of audit evidence that has been obt

Question

Several risks are inherent in the evaluation of audit evidence that has been obtained through the use of statistical sampling. An example of a beta or Type II error related to sampling risk is the failure to: (a) Accept the statistical hypothesis that a book value is not materially 29. misstated when the true book value is not materially misstated. Reject the statistical hypothesis that a book value is not materially misstated when the true book value is materially misstated. Properly define the population to be sampled. Draw a random sample from the population. (b) (c) (d)

Explanation / Answer

A type II error (false-negative) generally happens when the researcher or the investigator fails to reject a null hypothesis, which in the case, is actually false in the population. This results when the sample does not reflect or is not representative of the population.

Therefore, option B is correct.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.