As a result of tests of controls, an auditor over relied on internal control and decreased substantive testing. This overreliance occurred because the true deviation rate in the population was:
A)less than the risk of assessing control risk too low on the auditor's sample.
B)less than the deviation rate in the auditor's sample.
C)more than the risk of assessing control risk too low on the auditor's sample.
D)more than the deviation rate in the auditor's sample.

Question

Quizplus · Accepted Answer

The auditor over relied on internal controls because the true deviation rate in the population was more than the deviation rate in the auditor's sample, leading to an incorrect assessment of control effectiveness.

As a Result of Tests of Controls, an Auditor Over