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:

Gypsum

A soft sulfate mineral composed of calcium sulfate dihydrate, used in the construction industry and as a fertilizer.

Granodiorite

A coarse-grained igneous rock similar to granite but containing more plagioclase feldspar than orthoclase feldspar, commonly found in continental crust.

Marine Settings

Environments located in or influenced by the sea, including coastal regions and oceanic basins, characterized by specific ecological and sedimentological conditions.

Copper Deposit

An area of the Earth's crust containing a significant amount of copper, making it economically viable to mine.