The Audit Team Decided to Reduce Planned Reliance on Internal

question 43

Multiple Choice

The audit team decided to reduce planned reliance on internal controls based on the results of attributes sampling.However,the actual rate of deviation in the population is lower than the tolerable rate of deviation.Which type of risk and loss is the audit team exposed to?

• A) Risk of assessing control risk too low; efficiency loss
• B) Risk of assessing control risk too high; effectiveness loss
• C) Risk of assessing control risk too low; effectiveness loss
• D) Risk of assessing control risk too high; efficiency loss

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Definitions:

Luria-Nebraska Neuropsychological Battery

A screening tool used by clinicians to determine if significant brain injury or psychological impairments are present or to distinguish between brain damage and mental health disorders.

Memory Deficits

Impairments in the ability to remember information or events, which can result from neurological conditions, injury, or psychological factors.

Brain Injury

Physical damage to the brain, which can result in temporary or permanent impairment of cognitive, physical, and psychosocial functions.

CHC Model

Stands for the Cattell-Horn-Carroll theory, a psychological theory that attempts to describe human cognitive abilities and their variations as a set of factors.