AUD Sampling · Updated November 2026
Incorrect Acceptance vs Incorrect Rejection: Which One Is Dangerous?
Both are sampling errors, but one threatens audit effectiveness while the other mainly wastes audit effort.
Incorrect acceptance
The sample leads the auditor to conclude a balance is acceptable when the population is materially misstated. This threatens audit effectiveness.
Incorrect rejection
The sample suggests a materially misstated population when the population is actually acceptable, usually hurting efficiency through extra work.
Control testing equivalent
Assessing control risk too low is especially dangerous because the auditor may rely too heavily on ineffective controls.
The takeaway
Wrongly trusting bad accounting threatens effectiveness. Wrongly distrusting good accounting usually costs extra work.
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FAQ
Which risk is more dangerous for audit effectiveness?
Incorrect acceptance.
Does incorrect rejection usually create more work?
Yes.
Can a larger sample eliminate sampling risk?
It can reduce it, not eliminate it completely.