Question
As a result of sampling procedures applied as tests of controls, an auditor incorrectly underrelies on controls. The most likely explanation for this situation is
As a result of sampling procedures applied as tests of controls, an auditor incorrectly underrelies on controls. The most likely explanation for this situation is that
A. The deviation rate in the auditors sample is less than the tolerable population rate, but the deviation rate in the population exceeds the tolerable population rate.
B. The deviation rate in the auditors sample exceeds the tolerable population deviation rate, but the deviation rate in the population is less than the tolerable population deviation rate.
C. The deviation rates of both the auditors sample and the population exceed the tolerable population rate.
D. The deviation rates of both the auditors sample and the population are less than the tolerable population rate.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
