The risk of underreliance is the probability that the evidence in the sample indicates:
A)Low control risk when the actual operating effectiveness of the control does not justify a low control risk assessment.
B)Low control risk when the actual operating effectiveness of the control justifies a low control risk assessment.
C)High control risk when the actual operating effectiveness of the control would justify a lower control risk assessment.
D)High control risk when the actual operating effectiveness of the control would justify a higher control risk assessment.

Question

Quizplus · Accepted Answer

Underreliance occurs when the sample suggests a higher control risk than is actually warranted, meaning the controls are more effective than the sample indicates.

The Risk of Underreliance Is the Probability That the Evidence