51) When using sampling for tests of controls, which of the following audit consequences may follow? A) If sample results indicate that the control is operating effectively, but in fact it is not control risk will be assessed too low. B) If sample results indicate that the control is operating effectively, but in fact it is not control risk will be assessed too high. C) If sample results indicate that the control is not operating effectively, but in fact it is operating effectively, the audit is likely to be faulty because of reduced substantive tests. D) If sample results indicate that the control is not operating effectively, but in fact it is operating effectively, control risk will be assessed too low, 52) The auditors expect a population deviation rate of billing errors of two percent, and have established a tolerable rate of five percent. The sampling approach most likely to be used is: A) Attributes sampling. B) Stratified sequential sampling. C) Discovery sampling. D) None, as sampling does not seem appropriate in this situation. 53) Which of the following types of risk is of critical importance to auditors in performing tests of controls? A) The risk of assessing control risk too low. B) The risk of assessing control risk too high. C) The risk of incorrect acceptance. D) The risk of incorrect rejection 54) The auditors' failure to recognize a misstatement in an amount or a deviation in an internal control data processing procedure is described as a: A) Statistical error B) Sampling misstatement C) Standard error of the mean. D) Nonsampling error. 55) An auditor plans to examine a sample of 20 checks for counter signatures as prescribed by the client's control procedures. One of the checks in the chosen sample of 20 cannot be found The auditor should consider the reasons for this limitation and: A) Evaluate the results as if the sample size had been 19. B) Treat the missing check as a deviation for the purpose of evaluating the sample C) Treat the missing check in the same manner as the majority of the other 19 checks, i.e. countersigned or not. D) Choose another check to replace the missing check in the sample