When Using Sampling for Tests of Controls,which of the Following

question 20

Multiple Choice

When using sampling for tests of controls,which of the following audit consequences may follow?

• A)If sample results indicate that the control is operating effectively,but in fact it is not,control risk will be assessed too low.
• B)If sample results indicate that the control is operating effectively,but in fact it is not,control risk will be assessed too high.
• C)If sample results indicate that the control is not operating effectively,but in fact it is operating effectively,the audit is likely to be faulty because of reduced substantive tests.
• D)If sample results indicate that the control is not operating effectively,but in fact it is operating effectively,control risk will be assessed too low.

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Definitions:

Steep Slopes

Land areas where the ground rises sharply, often leading to challenges in construction and increased risk of erosion.

Wind

The flow of gases on a large scale, primarily on Earth's surface, resulting from air moving from high pressure to low pressure areas.

Sedimentary Rocks

Rocks formed by the deposition and subsequent cementation of mineral or organic particles on the floor of oceans or other bodies of water.

Rock Forms

The various shapes and structures that rocks can take, including layered formations, intrusions, and extrusions.