As a Result of Tests of Controls, an Auditor Over

question 30

Multiple Choice

As a result of tests of controls, an auditor over relied on internal control and decreased substantive testing. This overreliance occurred because the true deviation rate in the population was

• A) Less than the risk of assessing control risk too low on the auditor's sample.
• B) Less than the deviation rate in the auditor's sample.
• C) More than the risk of assessing control risk too low on the auditor's sample.
• D) More than the deviation rate in the auditor's sample.

Recognize methods for ensuring message clarity and effectiveness in communication.

Understand the various dimensions of product quality and their implications.

Grasp the concept and application of Statistical Process Control (SPC) in quality management.

Recognize the definition and measurement of productivity in a business context.