Can you explain the matrix? Not understanding?

True State of Population Auditor's Estimate Deviation rate Deviation rate Based on is less than exceeds Sample Results tolerable rate. tolerable rate Maximum deviation rate 1. Correct III. Incorrect is less than tolerable rate Maximum deviation II. Incorrect IV. Correct rate exceeds tolerable rate. result of testing controls, the auditor underrelles on the controls and increases substantive eing. This is illustrated by situation DAIL B. III X. C. u Answer C is incorrect because in situation I, the auditor properly should rely on the controls D. IV