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:

Leadership Efficiency

The ability of a leader to achieve desired outcomes with minimal waste of time, effort, or resources.

Trait Approach

A perspective in leadership that suggests certain physical, social, and personal characteristics are inherent to leaders.

Significant Correlations

Statistical relationships between two variables indicating a strong association that is not likely due to chance alone.

Mediating Variables

Elements within a cause-and-effect relationship that explain the mechanism through which the independent variable affects the dependent variable.