In Order for the Auditor to Decide to Perform Tests

question 76

Multiple Choice

In order for the auditor to decide to perform tests of controls,which of the following relationships should exist?

• A)The sampling risk should be less than 5%.
• B)The tolerable rate of deviation should exceed the expected population deviation rate.
• C)The expected population deviation rate should exceed the risk of overreliance.
• D)The expected population deviation rate should exceed the tolerable rate of deviation.

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Definitions:

Deinstitutionalization

The process of moving individuals with mental health conditions out of large, centralized institutions and into community-based treatment settings.

Adequate Follow-Up Care

Sufficient and appropriate monitoring and treatment after medical procedures, ensuring a patient's recovery or effective management of a condition.

Optimism

A mental attitude characterized by hope and confidence in positive outcomes or the success of future endeavors.

Deinstitutionalization

The process of moving individuals with mental health conditions or disabilities from long-term institutions to community-based care or less restrictive environments.