Acceptable Risk of Overreliance Is the Risk That the Auditor

question 138

True/False

Acceptable risk of overreliance is the risk that the auditor is willing to take in accepting a control as effective when the true population exception rate is greater than the estimated population exception rate.

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Definitions:

Extraverted Thinking

A cognitive style characterized by decision-making based on external criteria and logically derived solutions.

Logical

Characterized by clear, sound reasoning or a coherent form of thought based on premises which leads invariably to a conclusion.

Society's Rules

The norms, laws, and conventions established by a community or society that dictate acceptable and expected behaviors within that society.

Objective

Unbiased and not influenced by personal feelings or opinions in considering and representing facts.