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:

Flexibility

The ability to adapt or change according to different circumstances, requirements, or conditions, often considered a vital asset in both personal and organizational contexts.

Efficiency

The measure of how effectively resources are used to achieve a goal or outcome, with minimal waste of time, effort, and cost.

Flexible Manufacturing Systems

Advanced production systems that allow for the efficient production of small to medium batch sizes with a high degree of customization.

Automated Operations

Systems or processes that operate with minimal human intervention, using technology to perform tasks that were previously done manually.