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.

Examine the effects of group structure on member's status and behavior within the group.

Appraise the concepts of "groupthink" and its implications for group decision-making processes.

Understand the concepts and differences between end-result ethics and duty ethics.

Comprehend the impact of misrepresentation tactics (by commission and omission) on negotiations.

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Definitions:

Unattended Information

Information that is present in the environment but is not the focus of one's attention and hence is processed minimally or not at all.

Sensory Memory

The shortest-term element of memory, which allows retention of impressions of sensory information after the original stimuli have ended.

Primacy and Recency Effects

Psychological terms describing the tendency to remember information that appears at the beginning (primacy) and end (recency) of a list better than information in the middle.

Memory

The cognitive process of encoding, storing, and retrieving information.