As a Result of Sampling Procedures Applied as Tests of Controls,an

question 53

Multiple Choice

As a result of sampling procedures applied as tests of controls,an auditor incorrectly assesses control risk lower than appropriate.The most likely explanation for this situation is that:

• A)The deviation rates of both the auditor's sample and the population exceed the tolerable rate of deviation.
• B)The deviation rates of both the auditor's sample and the population are less than the tolerable rate of deviation.
• C)The deviation rate in the auditor's sample is less than the tolerable rate of deviation,but the deviation rate in the population exceeds the tolerable rate of deviation.
• D)The deviation rate in the auditor's sample exceeds the tolerable rate of deviation,but the deviation rate in the population is less than the tolerable rate of deviation.

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Definitions:

Administrative Procedures Act

A U.S. law that governs the process by which federal agencies develop and issue regulations, including requirements for public notice and opportunity to comment.

Federal Regulation

Laws and rules enforced by federal agencies intended to control practices and ensure the public welfare.

Administrative Register

An official record maintained by government agencies detailing regulatory, legal, and administrative actions and decisions.

Code of Federal Regulations

The collection of all the rules, regulations, and procedures established by the federal government of the United States.