When an Auditor Has Reduced Assessed Control Risk Based on Tests

question 117

True/False

When an auditor has reduced assessed control risk based on tests of controls, he or she may then reduce the extent to which the accuracy of the financial statement information directly related to those controls must be supported through the accumulation of evidence using substantive tests.

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Definitions:

Leaf

In the context of data representation, a part of a stem-and-leaf plot representing the smallest significant digit of data points.

Stem-and-Leaf Display

A graphical method used to represent quantitative data where each data value is split into a "stem" (the leading digit(s)) and a "leaf" (the last digit).

Test Scores

Numeric values that represent an individual's performance on assessments.

Statistics Examination

An assessment or test focused on measuring an individual's understanding and proficiency in statistical concepts and methods.