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The Audit Team Decided to Reduce Planned Reliance on Internal

question 53

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The audit team decided to reduce planned reliance on internal controls based on the results of attributes sampling.However,the actual rate of deviation in the population is lower than the tolerable rate of deviation.Which type of risk and loss is the audit team exposed to?


Definitions:

Construct Valid

Pertains to the degree to which a test or measurement accurately represents what it is intended to measure, and how well it relates to the theoretical concept.

Work Sample Test

An assessment method that requires job applicants to perform tasks or work activities that mirror the tasks of the job they are applying for.

Integrity Test

A test designed to assess a potential employee's honesty, trustworthiness, and adherence to moral and ethical principles.

Disruptive Behaviours

Actions by individuals that interrupt or negatively impact the normal flow of work or environment, potentially harming the organization's culture.

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