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:

Thermoception

The sensory perception of temperature.

Gestalt

A concept originating from psychology that emphasizes the human tendency to perceive the whole rather than the individual parts, suggesting that the whole is greater than the sum of its parts.

Figure-Ground Relationship

A visual perception principle where an object (the figure) is perceived distinctly from its background (the ground).

Principle of Closure

A gestalt psychology principle suggesting that individuals tend to perceive incomplete figures as complete.