Based on the Results of Attributes Sampling,the Audit Team Assessed

question 22

Multiple Choice

Based on the results of attributes sampling,the audit team assessed control risk too low and did not modify the nature,timing,and extent of its further audit procedures to reduce detection risk.This situation would most likely result in a(n) :

• A)Higher level of audit risk than planned.
• B)Lower level of inherent risk.
• C)Greater efficiency loss.
• D)Lower effectiveness loss.

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Definitions:

Net Operating Income

A measure of a company's profitability from regular business operations, excluding deductions of interest and taxes.

Payback Period

The time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Scrap Value

The estimated resale value of an asset at the end of its useful life, also known as salvage value.

Incremental Annual

Incremental annual refers to the year-over-year changes or additional amounts in revenue, cost, or other financial metrics.