As a Result of Tests of Controls, an Auditor Incorrectly

question 8

Multiple Choice

As a result of tests of controls, an auditor incorrectly assessed control risk too low and decreased substantive testing. This assessment occurred because the true deviation rate in the population was:

• A)more than the risk of assessing control risk too low based on the auditor's sample.
• B)more than the deviation rate in the auditor's sample.
• C)less than the risk of assessing control risk too low based on the auditor's sample.
• D)less than the deviation rate in the auditor's sample.

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Definitions:

Necessary Goal

A goal considered essential for a person or entity to achieve specific desired outcomes or fulfill a purpose.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Cattell

Raymond Cattell was a psychologist known for his work on personality theory and psychometrics, including the development of several personality tests.

Cattell

Refers to Raymond Cattell, a psychologist known for his work in personality, factor analysis, and the development of several personality assessments.