What is the true deviation rate in the population


Problem: 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.
  • more than the deviation rate in the auditor's sample.

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Accounting Basics: What is the true deviation rate in the population
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