D is corrent because the risks of incorrect acceptance and assessing control risk too low relate to the effectiveness of an audit in detecting an existing material misstatement.
A is incorrect because preliminary estimates of materiality levels relate most directly to the risk of incorrect acceptance, and only indirectly to the risk of assessing control risk too low.
B is incorrect because the term allowable risk of tolerable misstatement is ambiguous, and not used in the professional literature.
C is incorrect because the risk of incorrect rejection and the risk of assessing control risk too high relate to the efficiency of the audit.
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