As the Acceptable Level of Detection Risk Increases, an Auditor

question 31

Multiple Choice

As the acceptable level of detection risk increases, an auditor may change the:

• A)assessed level of control risk from less than high to high.
• B)assurance provided by tests of controls by using a larger sample size than planned.
• C)timing of substantive tests from year-end to an interim date.
• D)nature of substantive tests from less effective to more effective procedures.

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Definitions:

Percentile

A percentile is a statistical measure indicating the value below which a given percentage of observations in a group of observations falls.

Mode

A measure of central tendency that represents the score with the greatest frequency in a distribution.

Group of Data

A group of data refers to a collection of related data points or information that are often analyzed together to identify patterns, trends, or insights.

Inferential Statistics

Set of statistical analyses used to draw inferences from a smaller group of data (sample) that then can be applied to a larger group (population).