As a Result of Tests of Controls,an Auditor Assessed Control

question 32

Multiple Choice

As a result of tests of controls,an auditor assessed control risk too low and decreased the effectiveness of her substantive procedures.This assessment occurred because the true deviation rate in the population was

• A) Less than the risk of overreliance based on the auditor's sample.
• B) Less than the deviation rate in the auditor's sample.
• C) More than the risk of overreliance based on the auditor's sample.
• D) More than the deviation rate in the auditor's sample.

---

Definitions:

Aggregate Demand

Aggregate demand represents the total demand for all goods and services in an economy at a given overall price level and in a given time period.

Market Price

The current price at which a good or service can be bought or sold in a given market.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given moment.

Nitrogen Oxide

Gases produced from the reaction between nitrogen and oxygen during combustion at high temperatures, often contributing to air pollution.