Why Does the Risk of Overreliance Have an Inverse Relationship

question 52

Multiple Choice

Why does the risk of overreliance have an inverse relationship with sample size?

• A)As the audit team expects fewer deviations from the control policy or procedure,the audit team can appropriately examine fewer items.
• B)As the audit team is less concerned with making an incorrect conclusion with respect to reliance on the client's internal control,the audit team can appropriately examine fewer items.
• C)As the level of control risk increases,the audit team is placing less reliance on internal control and can appropriately examine fewer items.
• D)As the audit team requires greater compliance with the control policy or procedure,the audit team must examine a greater number of items.

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Definitions:

Inheritance

The practice of passing on property, titles, debts, rights, and obligations upon the death of an individual.

Castilian Monarchy

Refers to the monarchy of Castile, a significant kingdom in the Iberian Peninsula that played a central role in the unification of Spain and the Spanish Empire.

Cortes

A term that historically refers to the representative assemblies or parliaments in Spain and Portugal or their colonial territories.

Traditional Rights

Refers to the established customs, practices, and rights that have been recognized and protected over time in a society or community.