Indicate Whether Each of the Following Characteristics Relate to the Risk

question 104

Short Answer

Indicate whether each of the following characteristics relate to the risk of overreliance (O),risk of underreliance (U),both (B),or neither (N).
1____.Is specifically considered by the auditor in determining sample size and evaluating sample results.
2____.Is characterized by the auditor's sample indicating that the control is functioning effectively.
3____.Results in the auditor drawing an incorrect conclusion with respect to the population being examined.
4____.Is also referred to as the risk of assessing control risk too high.
5____.Results in an effectiveness loss to the auditor.
6____.Is used to determine the appropriate sample selection method.
7____.Is characterized by the population deviation rate being less than the tolerable rate of deviation.
8____.Is an example of a sampling risk to which the auditor is exposed when performing tests of controls.

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Definitions:

Mean Number

The mean value obtained from a series of numbers, determined by adding all the numbers together and then dividing by the total number of values in the series.

Safety Roadblock

A preventative measure set up temporarily on roads to enhance safety by controlling traffic flow, reducing speed, or preventing access to certain areas.

First Serves

In tennis, the initial serve attempt in a point; this serve, if successful, can set the tone for the remainder of the play.

Probability

Probability quantifies the likelihood of an event happening, ranging from 0 (impossibility) to 1 (certainty).