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%.

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Definitions:

Ingroup

A social group to which a person psychologically identifies as being a member, often leading to favoritism towards ingroup members and prejudice against outgroup members.

Outgroup

A social group toward which an individual feels opposition, rivalry, or hostility.

Evolutionary Explanation

A theory that attributes the development and behaviors of organisms to evolutionary factors such as natural selection.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful.