In testing of controls, when the true deviation rate in the population is __________________ the auditor will likely incorrectly assess control risk too low and decrease his/her substantive testing.

a. less than the deviation rate in the auditor's sample

b. more than the risk of assessing control risk too low based on the auditor's sample

c. more than the deviation rate in the auditor's sample

d. less than the risk of assessing control risk too low based on the auditor's sample

Why does an auditor test ALL individually significant items in an account balance rather than taking a sample and testing them?

a. To accept no sampling risk for items greater than tolerable misstatement.

b. To increase the audit risk at which a decision will be reached from the results of the sample selected.

c. To increase the size of the confidence bound around the projected misstatement.

d. To increase sample size.