Which of the Following Risks Expose the Auditor to Effectiveness

question 56

Multiple Choice

Which of the following risks expose the auditor to effectiveness losses?

• A) Risk of assessing control risk too high, risk of incorrect acceptance
• B) Risk of assessing control risk too low, risk of incorrect rejection
• C) Risk of assessing control risk too high, risk of incorrect rejection
• D) Risk of assessing control risk too low, risk of incorrect acceptance

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Definitions:

Upper Limit

The highest value in a range or set of data, often referring to the maximum point in an interval or boundary in statistical analysis.

Standard Deviation

An indicator that determines how spread out a dataset is from its mean, obtained by taking the square root of the variance.

Population Standard Deviation

The measure of the dispersion of data points in a population from its mean, providing insight into the variability within the entire population.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain level of confidence.