As a Result of Tests of Controls, an Auditor Over

question 53

Multiple Choice

As a result of tests of controls, an auditor over relied on internal control and decreased substantive testing. This overreliance occurred because the true deviation rate in the population was:

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

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Systematic Bias

A consistent and pervasive error in judgment or procedure that leads to inaccurate conclusions or assessments, often resulting from a particular perspective or methodology.

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Principle Of Falsifiability

The principle that a scientific theory must make predictions that are specific enough to expose the theory to the possibility of disconfirmation; that is, the theory must predict not only what will happen but also what will not happen.