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:

Well-Known

Being widely recognized or familiar to many people.

Desired State

The preferred or targeted condition or status that an individual, group, or organization aims to achieve.

Standardized Way

A method or procedure that has been uniformly applied and adopted across different situations or environments to ensure consistency.

Existing State

The current condition or situation of a system, organization, or individual before any changes or interventions.