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:

Facility Level Activity

Operations and processes that support the overall functioning of a facility, but are not directly tied to the production of goods or services.

Veterinary Clinic

A medical facility focused on the diagnosis, treatment, and care of animals, offering services like surgery, dental care, and preventive medicine.

Overhead Allocation

The process of spreading overhead costs across different departments or products based on a predetermined criteria.

Activity-Based Costing

This is a pricing technique which tags and assigns the expenses of each activity within a company to its various products and services, based on their specific consumption levels.