As a Result of Tests of Controls,an Auditor Assessed Control

question 84

Multiple Choice

As a result of tests of controls,an auditor assessed control risk too low and decreased the effectiveness of her substantive procedures.This assessment occurred because the true deviation rate in the population was

• A) less than the risk of overreliance, based on the auditor's sample.
• B) less than the deviation rate in the auditor's sample.
• C) greater than the risk of overreliance, based on the auditor's sample.
• D) greater than the deviation rate in the auditor's sample.

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Definitions:

Normally Distributed

Describes a bell-shaped distribution of data points, where most scores cluster around a central peak and the probabilities for values taper off equally in both directions from the center.

Population Means

The average values for characteristics or measurements calculated for every member of an entire population.

Sums of Squares

A statistical technique used in ANOVA to describe the total variability of a dataset by calculating the sum of squared differences from the mean.

Total Variation

The total sum of squared differences between each observation and the overall mean of a data set, used in statistics to measure variability.