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