If the Sample Evidence Does Not Support the Planned Level

question 109

Multiple Choice

If the sample evidence does not support the planned level of control risk,the audit team could

• A) Increase the assessed level of control risk.
• B) Perform additional substantive procedures, reducing the necessary level of detection risk.
• C) Expand the sample to achieve an observed upper limit rate of deviation less than the tolerable rate of deviation.
• D) All of the above are correct responses.

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Definitions:

Import Restrictions

Measures imposed by a government to control the quantity of goods coming into a country, often to protect domestic industries.

Trade Deficit

An excess of imports over exports.

Capital Flight

A large and sudden reduction in the investment of assets in a country, often due to political or economic instability.

Exchange Rate

The worth of one currency when converted to another.