Based on a 5% Risk of Assessing Control Risk Too

question 34

Multiple Choice

Based on a 5% risk of assessing control risk too low, how would an auditor interpret a computed upper deviation rate of 7%?

• A)The auditor is willing to accept a deviation rate of 7% before deciding not to rely on the control.
• B)There is a 5% chance that the deviation rate in the population is less than 7%.
• C)There is a 5% chance that the deviation rate in the population exceeds 7%.
• D)There is a 95% chance that the deviation rate in the population equals 7%.

---

Definitions:

Secondary Aging

Aging that occurs due to controllable factors like poor diet, inactivity, disease, and substance abuse, rather than genetic factors.

Senescence

The process of aging, whereby the body becomes less strong and efficient.

Smoking Cigarettes

Smoking cigarettes involves the inhalation of smoke generated by burning tobacco wrapped in paper, a practice known to have harmful health effects, including increased risk of cancer, heart disease, and respiratory problems.

Elderly Couples

Refers to pairs of individuals, typically partners or spouses, who are in the later stages of life, often considered to be those who are 65 years old or older.