The Acceptable Risk of Overreliance

question 61

Multiple Choice

The acceptable risk of overreliance

• A) is the risk that the auditor will erroneously conclude that the controls are less effective than they actually are.
• B) is less of a concern to the auditors than the risk of underreliance.
• C) represents the auditor's measure of sampling risk.
• D) is determined by a statistical formula, and not by professional judgment.

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Definitions:

Visual

Pertaining to the sense of sight or visual aids.

Kinesthetic

Pertaining to the kinesthetic sense, which is responsible for perceiving the position, weight, or motion of muscles, tendons, and joints.

Imitation

The action of copying or mimicking the behaviors, speech, or actions of others as a way of learning or social interaction.