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:

Herniated Intervertebral Disk

A condition where the soft center of a spinal disk pushes through a tear in the tougher exterior casing, often causing pain and nerve irritation.

Hyporeflexia

A condition characterized by below-normal or absent reflexes, which can be indicative of peripheral nervous system damage.

Babinski Sign

A reflex action of the toes, where they fan out when the sole of the foot is stimulated, indicating possible neurological damage.

Cerebral Cortex

The outer layer of the cerebrum, involved in various high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.