An Auditor May Decide to Assess Control Risk at High

question 44

Multiple Choice

An auditor may decide to assess control risk at high for certain assertions because the auditor believes:

• A)evaluating the effectiveness of control policies and procedures is inefficient.
• B)sufficient evidential matter to support the assertions is likely to be available.
• C)considering the relationship of assertions to specific account balances is more efficient.
• D)more emphasis on tests of controls than substantive tests is warranted.

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Definitions:

Simple Random Sample

A portion of a statistical group where every member has the same chance of selection.

Random

Lacking pattern, purpose, or predictability, often used in the context of selecting items or events in a way that each has an equal chance of being chosen.

Average Age

The mean value of the ages of individuals in a particular group, calculated by summing their ages and dividing by the number of individuals.

Sampling Frame

The list or database from which a sample is drawn for a study, containing all the elements that define the population.