As a Result of Tests of Controls, an Auditor Assessed

question 140

Multiple Choice

As a result of tests of controls, an auditor assessed control risk too low and decreased substantive testing. This occurred because the true deviation rate in the population was:

• A) more than the deviation rate in the auditor's sample.
• B) less than the risk of assessing control risk too low based on the auditor's sample.
• C) more than the risk of assessing control risk too low based on the auditor's sample.
• D) less than the deviation rate in the auditor's sample.

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Definitions:

Leisure Time

Free time that an individual can spend away from work, chores, and other obligations, often engaging in recreational activities.

Ascribed Status

A social position assigned at birth or involuntarily later in life, not based on achievements or abilities.

Individual's Control

The power or influence a person has over their own decisions and actions in various aspects of life, including personal, social, and professional domains.

Ascribed Statuses

Social positions a person is born into, such as race, gender, and family background, as opposed to achieved statuses, which are acquired through personal effort.