QUESTION 37 As a result of tests of controls, an auditor under relied on internal control and increased substantive testing. This under-reliance occurred because the true deviation rate in the population was: less than the risk of assessing control risk too low on the auditor's sample. less than the deviation rate in the auditor's sample. more than the risk of assessing control risk too low on the auditor's sample. O more than the deviation rate in the auditor's sample. QUESTION 38 What is the risk of using sampling during an audit? Individuals may fail to obtain a true understanding of the question they are examining. The time spent in planning and selecting the sample may exceed the time savings from examining only a subset of the items. The conclusion reached by examining a sample of items may differ from the conclusion that would be reached if the entire population were examined. Sampling cannot be used to examine account balances that are material to the financial statements. QUESTION 39 When performing an analytical procedures, the auditor forms an expectation of the balance or quantity of an item under audit. In order to develop this estimate information can be obtained from all of the following except: Tracing transactions through the system to determine whether procedures are being applied as prescribed. O Comparison of financial data with data for comparable prior periods. Study of the relationships of elements of financial data that would be expected to conform to a predictable pattern based upon the entity s experience. Comparison of financial data with similar data for the industry in which the entity operates