In Testing Controls, an Overreliance on Internal Controls That Reduces

question 90

Multiple Choice

In testing controls, an overreliance on internal controls that reduces substantive tests and increases the likelihood of not detecting a material misstatement occurs because:

• A)true deviation in the population was less than the sample.
• B)true deviation in the population was greater than the sample.
• C)auditor judgment was flawed.
• D)it is inherent in the audit risk model.

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Definitions:

Kerner Report

A report released in 1968 by the National Advisory Commission on Civil Disorders that identified racism and social inequality as the primary causes of urban riots.

Urban Riots

Violent disturbances or upheavals that occur in urban areas, often as a result of social grievances or tensions.

White Racism

Discriminatory beliefs and practices that privilege white individuals over people of other racial backgrounds, often institutionalized within societal structures.

Doves

In political terms, individuals or policies that prefer negotiation and peaceful solutions over conflict and war.