If Tests of Controls Induce the Auditor to Change the Assessed

question 41

Multiple Choice

If tests of controls induce the auditor to change the assessed level of control risk for Property Plant & Equipment from 50% to 100%, and audit risk (6%) and inherent risk remain constant, the acceptable level of detection risk:

• A)would most likely change from 10% to 5%.
• B)would most likely change from 20% to 40%.
• C)would most likely change from 30% to 15%.
• D)would be unchanged, because the auditor has control over detection risk.
• E)cannot be determined because inherent risk is not given.

---

Definitions:

Homozygote Advantage

A situation where individuals with two identical alleles for a certain gene have a selective advantage over heterozygotes.

Polyploidy

The condition in which a cell or organism has more than two complete sets of chromosomes, often found in plants.

Aneuploidy

Any chromosomal aberration in which there are either extra or missing copies of certain chromosomes.

Nondisjunction

The failure of chromosome pairs to separate properly during cell division, resulting in gametes with an abnormal number of chromosomes.