In considering the characteristics of a population, for tests of controls, the auditor makes an assessment of the expected rate of deviation based on the auditor's understanding of the relevant controls or on the examination of a small number of items from the population.Select one:TrueFalse

As a result of tests of controls, an auditor assessed control risk too low and decreased substantive testing. This assessment occurred because the true deviation rate in the population wasSelect one:a.More than the risk of assessing control risk too low, based on the auditor's sample.b.Less than the deviation rate in 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.

When using statistical sampling for tests of controls, an auditor's evaluation would include a statistical conclusion about whether:Select one:a.Population characteristics occur at least once in the population.b.Monetary precision exceeds a predetermined amount.c.Deviations in the population are within an acceptable range.d.The population's total monetary value is not in error by more than a predetermined amount.

When designing tests of controls and tests of details, the auditor shall determine means of selecting items for testing that are effective in meeting the purpose of the audit procedure.Select one:TrueFalse

In addition to evaluating the frequency of deviations in tests of controls, an auditor also considers certain qualitative aspects of the deviations. The auditor most likely will give broader consideration to the implications of a deviation if it isSelect one:a.The only deviation discovered in the sample.b.Caused by an employee's misunderstanding of instructions.c.Identical to a deviation discovered during the prior year's audit.d.Initially concealed by a forged document.

If the auditor is able to apply the designed audit procedures, or suitable alternative procedures, to a selected item, the auditor shall treat that item as a deviation from the prescribed control, in the case of tests of controls, or a misstatement, in the case of tests of details.Select one:TrueFalse