Assume that an auditor is evaluating the reliability of a control. The auditor's prior probability of the
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Assume that an auditor is evaluating the reliability of a control. The auditor's prior probability of the control being reliable is .95 . A test is undertaken, however, and the test result indicates the control is unreliable. Previous experience with the test has shown that the probability of the test producing an unfavorable result when the control is, in fact, reliable is .15 , and the probability of the test producing an unfavorable result when the control is, in fact, unreliable is .9. In light of the test result, the auditor should now assess the probability of the control being reliable as:
a. .24
b. 76
c. 8125
d. None of the above
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