As a Result of Tests of Controls, an Auditor Incorrectly

question 8

Multiple Choice

As a result of tests of controls, an auditor incorrectly assessed control risk too low and decreased substantive testing. This assessment occurred because the true deviation rate in the population was:

• A)more than the risk of assessing control risk too low based on the auditor's sample.
• B)more than the deviation rate in the auditor's sample.
• C)less than the risk of assessing control risk too low based on the auditor's sample.
• D)less than the deviation rate in the auditor's sample.

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Definitions:

Taiwan

An island in East Asia with a vibrant economy and democratic government, known for its technological advancements and rich cultural heritage.

Foreign Aid

Money, food, or other resources given or lent by one country to another.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.

Glocalization

The simultaneous homogenization of some aspects of life and the strengthening of some localdifferences under the impact ofglobalization