Sample Risk: What is a Type 2 Errors (False Acceptance)?

Type 2 errors relate to Effectiveness— The auditor may have failed to meet the overall objective, which is to limit audit risk to an acceptably low level. (The client will have no incentive to argue about this conclusion, so the auditors will not have any reason to take a second look.) *** 1. Tests of controls => the risk of overreliance on internal controls (also known as the risk of assessing control risk too low). 2. Substantive testing => the risk of incorrect acceptance.