If the sample deviation rate is lower than the tolerable deviation rate,the auditor will
A)reduce the amount of control testing
B)assume controls are not working
C)assume the controls are working
D)reduce the amount of substantive testing
E)increase the amount of substantive testing
F)both A and C
G)both B and E
H)Both C and D

Question

Quizplus · Accepted Answer

If the sample deviation rate is lower than the tolerable deviation rate, the auditor can assume the controls are working effectively (C) and may reduce the amount of substantive testing (D) as the risk of material misstatement is lower.

If the Sample Deviation Rate Is Lower Than the Tolerable