If the expected deviation rate exceeds the tolerable deviation rate, the auditor is most likely to
A) Have a large sample size.
B) Set control risk at the maximum without sampling.
C) Set control risk at the minimum without sampling.
D) Pick a lower risk of assessing control risk too low to increase sample size.

Question

Quizplus · Accepted Answer

If the expected deviation rate exceeds the tolerable deviation rate, the auditor would set control risk at the maximum because the controls are not reliable, and thus, the auditor cannot rely on them.

If the Expected Deviation Rate Exceeds the Tolerable Deviation Rate