As a result of tests of controls, an auditor assessed control risk too low and decreased substantive testing. This occurred because the true deviation rate in the population was:
A) more than the deviation rate in the auditor's sample.
B) less than the risk of assessing control risk too low based on the auditor's sample.
C) more 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 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 incorrect conclusion about the effectiveness of the controls.

As a Result of Tests of Controls, an Auditor Assessed