Multiple Choice
The audit team decided to reduce planned reliance on internal controls based on the results of attributes sampling.However,the actual rate of deviation in the population is lower than the tolerable rate of deviation.Which type of risk and loss is the audit team exposed to?
A) Risk of overreliance; efficiency loss.
B) Risk of underreliance; effectiveness loss.
C) Risk of overreliance; effectiveness loss.
D) Risk of underreliance; efficiency loss.
Correct Answer:
Verified
Correct Answer:
Verified
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