The Likelihood of Assessing Control Risk Too High Is the Risk

question 92

Multiple Choice

The likelihood of assessing control risk too high is the risk that the sample selected to test controls

• A) Does not support the auditor's planned level of control risk when the true operating effectiveness of the control justifies such an assessment.
• B) Contains misstatements that could be material to the financial statements when aggregated with misstatements in other account balances or transaction classes.
• C) Contains proportionally fewer monetary errors or deviations from prescribed control procedures than exist in the balance or class as a whole.
• D) Does not support the tolerable misstatement for some or all of management's assertions.

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Definitions:

Formula

A mathematical relationship or rule expressed in symbols.

Project Completion Time

The estimated or planned duration within which a specific project is expected to be completed.

Early Start Time

The earliest possible point in time that an activity or project can begin, taking into account any constraints or prior dependencies.

Activity M

A specific task, action, or series of actions carried out as part of a broader project or process.