As a Result of Tests of Controls, an Auditor Found

question 29

Multiple Choice

As a result of tests of controls, an auditor found that they had assessed control risk as too low (their planned reliance on internal control was too high) . This assessment occurred because the deviation rate in the sample was:

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

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Definitions:

Projections

The action of predicting or estimating something based on current trends or data.

Social Anxiety Disorder

A mental health condition characterized by intense fear and avoidance of social situations due to feelings of embarrassment, self-consciousness, and concern about being judged by others.

Agoraphobia

An anxiety disorder characterized by an intense fear of places or situations where escape might be difficult.

Panic Disorder

A psychiatric condition marked by repeated episodes of intense fear or anxiety that appear suddenly and often unexpectedly.