As a Result of Tests of Controls, an Auditor Assesses

question 629

Multiple Choice

As a result of tests of controls, an auditor assesses control risk too high. This incorrect assessment most likely occurred because:

• A) Control risk based on the auditor's sample is less than the true operating effectiveness of the client's control activity.
• B) The auditor believes that the control activity relates to the client's assertions when, in fact, it does not.
• C) The auditor believes that the control activity will reduce the extent of substantive testing when, in fact, it will not.
• D) Control risk based on the auditor's sample is greater than the true operating effectiveness of the client's control activity.

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Definitions:

Consciousness Levels

Variations in the awareness of oneself and one's surroundings, including states of wakefulness, sleep, dreaming, and altered states.

Preconscious Level

A psychoanalytic term referring to thoughts and feelings not currently in conscious awareness but can be readily accessed.

Immediate Awareness

The state of being consciously and directly cognizant of events, stimuli, or sensations as they occur in real-time.

Personality Structure

The organization of enduring personality traits and patterns that influence behavior and interactions.