As a result of tests of controls,an auditor assessed control risk too low and decreased the number of substantive procedures performed.This assessment occurred because the true deviation rate in the population was
A) More than the risk of overreliance based on the auditor's sample.
B) More than the deviation rate in the auditor's sample.
C) Less than the risk of overreliance based on the auditor's sample.
D) Less than the deviation rate in the auditor's sample.

Question

Quizplus · Accepted Answer

The auditor assessed control risk too low because the deviation rate in the sample was less than the true deviation rate in the population, leading to an incorrect conclusion about the effectiveness of controls.

As a Result of Tests of Controls,an Auditor Assessed Control