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.

Question

Quizplus · Accepted Answer

The auditor incorrectly assessed control risk too low because the true deviation rate in the population was more than the deviation rate in the auditor's sample, leading to an underestimation of control risk.

As a Result of Tests of Controls, an Auditor Incorrectly