Which of the Following Is Not True with Respect to the Risk

question 10

Multiple Choice

Which of the following is not true with respect to the risk of overreliance?

• A) This risk has an inverse relationship with sample size.
• B) This risk may occur when the auditor's sample indicates that the control is functioning as expected.
• C) This risk may occur when the true (but unknown) population deviation rate is higher than the tolerable rate of deviation.
• D) All of the above are true with respect to the risk of overreliance.

---

Definitions:

Calculability

The ability to assess or measure something quantitatively, often used in the context of evaluating efficiency, productivity, or performance.

Secondary Groups

These refer to groups characterized by formal, impersonal relationships and often have a specific goal or activity at their core.

Primary Groups

Small, close-knit, and often long-term social groups characterized by face-to-face interaction, deep emotional bonds, and a strong sense of loyalty.

Natural Disaster

A major adverse event resulting from natural processes of the Earth, such as earthquakes, floods, hurricanes, and volcanic eruptions.