The Risk of Underreliance Is the Probability That the Evidence

question 33

Multiple Choice

The risk of underreliance is the probability that the evidence in the sample indicates:

• A)Low control risk when the actual operating effectiveness of the control does not justify a low control risk assessment.
• B)Low control risk when the actual operating effectiveness of the control justifies a low control risk assessment.
• C)High control risk when the actual operating effectiveness of the control would justify a lower control risk assessment.
• D)High control risk when the actual operating effectiveness of the control would justify a higher control risk assessment.

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Definitions:

Corpus

The principal amount of a trust or estate, as distinguished from income or interest generated by it.

Property Held

Assets owned by an individual or entity, including real estate, investments, personal property, and intellectual property.

Trust

A fiduciary arrangement wherein one party, known as the trustee, holds assets for the benefit of another party, known as the beneficiary.

Intestate Succession

The legal process by which property is distributed to heirs according to state laws when someone dies without a valid will.