In Testing Controls,an Overreliance on Internal Controls That Reduces Substantive

question 62

Multiple Choice

In testing controls,an overreliance on internal controls that reduces substantive tests and increases the likelihood of not detecting a material misstatement occurs because:

• A)Deviation in the population was less than the sample.
• B) true deviation in the population was greater than the sample.
• C) auditor judgment was flawed.
• D) it is inherent in the audit risk model.

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Definitions:

Serotonin

A neurotransmitter in the brain associated with mood regulation, appetite, and sleep, among other functions.

Lysergic Acid Diethylamide

A psychedelic drug known for its psychological effects, which can include altered awareness of surroundings, perceptions, and feelings.

Divided-Consciousness View

A theory suggesting that during hypnosis, consciousness splits into different streams, one following the hypnotist's commands and the other acting as a "hidden observer."

Hypnosis

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes.