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 is likely to set control risk at the maximum because the controls are not reliable enough to reduce substantive testing.

If the Expected Deviation Rate Exceeds the Tolerable Deviation Rate