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.

The likelihood of assessing control risk too low is the risk that the sample selected to test controlsSelect one:a.Contains misstatements that could be material to the financial statements when aggregated with misstatements in other account balances.b.Contains proportionately more deviations from prescribed internal control policies or procedures than exist in the population.c.Does not support the tolerable misstatement for some or all of management's assertions.d.Does support the auditor's planned assessed level of control risk when the true operating effectiveness of the control does not justify such an assessment.

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

Why would the auditor assess control risk?Select one:a.Because it indicates where inherent risk may be the greatest.b.Because it determines whether sampling risk is sufficiently low.c.Because it affects the level of detection risk the auditor may accept.d.Because it includes the aspects of nonsampling risk that are controllable.

Assessing control risk too high is the risk that the sample.Select one:a.Contains monetary misstatements that could be material to the financial statements when aggregated with misstatements in other account balances or classes of transactions.b.Contains proportionately more deviations from prescribed control procedures than actually exist in the population as a whole.c.Does not support tolerable error for some or all of management's assertions.d.Contains proportionately fewer deviations from prescribed control procedures than actually exist in the population as a whole

If the results from tests of controls demonstrate that the internal controls are operating effectively, how will the auditor assess the levels of control risk and detection risk? Question 11Answer a. The level of control risk will be assessed as low. To achieve an acceptable level of audit risk the auditor can accept a lower level of detection risk. b. The level of control risk will be assessed as higher. To achieve an acceptable level of audit risk the auditor can accept a lower level of detection risk. c. The auditor determines that the internal controls are operating effectively, the level of control risk will be assessed as low. To achieve an acceptable level of audit risk the auditor can accept a higher level of detection risk. d. The level of control risk will be assessed as high. To achieve an acceptable level of audit risk the auditor can accept a higher level of detection risk.