When Using Sampling for Tests of Controls,which of the Following

question 20

Multiple Choice

When using sampling for tests of controls,which of the following audit consequences may follow?

• A)If sample results indicate that the control is operating effectively,but in fact it is not,control risk will be assessed too low.
• B)If sample results indicate that the control is operating effectively,but in fact it is not,control risk will be assessed too high.
• C)If sample results indicate that the control is not operating effectively,but in fact it is operating effectively,the audit is likely to be faulty because of reduced substantive tests.
• D)If sample results indicate that the control is not operating effectively,but in fact it is operating effectively,control risk will be assessed too low.