The Acceptable Risk of Overreliance

question 61

Multiple Choice

The acceptable risk of overreliance

• A) is the risk that the auditor will erroneously conclude that the controls are less effective than they actually are.
• B) is less of a concern to the auditors than the risk of underreliance.
• C) represents the auditor's measure of sampling risk.
• D) is determined by a statistical formula, and not by professional judgment.

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Definitions:

Personality Trait

Persistent modes of thinking, feeling, and acting that set people apart from each other.

Remembering Dreams

The process of recalling dreams after waking up, which varies greatly among individuals.

Openness To Experience

A dimension of personality characterized by imagination, creativity, and a willingness to try new things.

Psychosexual Development

A Freudian theory proposing that childhood stages of development (oral, anal, phallic, latency, genital) are crucial for the formation of adult personality and behavior.