When an Auditor Increases the Planned Assessed Level of Control

question 103

Multiple Choice

When an auditor increases the planned assessed level of control risk because certain control activities were determined to be ineffective,the auditor would most likely increase the

• A) Extent of tests of details.
• B) Level of inherent risk.
• C) Extent of tests of controls.
• D) Level of detection risk.

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Definitions:

Standard Deviation

A quantification of the extent to which a group of numbers deviates from their average.

Process Capability

A statistical measure of a process's ability to produce output within preset specifications and quality limits.

Exceed Requirements

To perform beyond the expectations or standards that have been set.

Being In Control

The perception or reality of an individual having the power or management over situations, objects, or people.