Choice "A" is correct. Both the risk of incorrect acceptance and the risk of assessing control risk too low relate to the effectiveness of an audit in detecting an existing material misstatement.
Choice "b" is incorrect. Allowable risk of tolerable misstatement does not exist.
Choice "c" is incorrect. The risk of incorrect acceptance and risk of assessing control risk too low are unrelated to preliminary estimates of materiality.
Choice "d" is incorrect. The efficiency of the audit is related to the risk of incorrect rejection and the risk of assessing control risk too high.
