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

question 79

Multiple Choice

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

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

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Definitions:

Channels of Command

The formal lines of authority and communication in an organization, through which orders and decisions are passed down.

Differentiation

The process of distinguishing or creating differences between objects, concepts, or entities.

Decision-Making

The cognitive process of selecting a course of action among several alternatives, crucial in clinical settings for determining patient care strategies.

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.