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:

Europeans

People originating from or associated with the continent of Europe, known for diverse cultures, languages, and historical backgrounds.

Indentured Servants

Individuals who worked under a contract for a set period of time, without wages, in exchange for transportation, food, and lodging.

Jamestown Colony

The first permanent English settlement in North America, established in Virginia in 1607.