If the Auditor Decides to Assess Control Risk at the Moderate

question 139

Multiple Choice

If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be

• A) increased in number.
• B) reduced in number.
• C) not performed.
• D) unchanged from prior planned settings.

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Definitions:

Sample Size

The number of observations or data points collected in a study or experiment.

Population Standard Deviation

A measure of the dispersion of a set of data from its mean, considering the entire population.

Confidence Level

The probability that the value of a parameter falls within a specified range of values, often used in confidence intervals.

Sample Size

The total count of data points or observations gathered from a population to perform statistics.