What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing??

A. The auditor has ascertained that the balance is materially correct when in actual fact it is not  
B. The auditor concludes the balance is materially misstated when in actual fact is not
C. The auditor has rejected an item from sample which was not supported by documentary evidence
D. He applies random sampling on data which is inaccurate and inconsistent

Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor??

A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation 
B. The safe custody of working papers is the responsibility of client, if kept at his premises
C. The working papers must be retained by an audit firm for a period of 10 years
D. Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.

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