True State of Population Auditor's Estimate Based on Sample Results Deviation rate is less than...

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True State of Population Auditor's Estimate Based on Sample Results Deviation rate is less than tolerable rate Deviation rate is less than tolerable rate Deviation rate exceeds tolerable rate Deviation rate exceeds tolerable rate Statement Combination 1. As a result of tests of controls, the auditor determines that controls are less effective than they actually are. Substantive testing is increased 2. As a result of tests of controls, the auditor determines that controls are as effective as they actually are. Substantive testing is decreased. 3. As a result of tests of controls, the auditor determines that controls are more effective than they actually are. Substantive testing is decreased. 4. As a result of tests of controls, the auditor determines that controls are as ineffective as they actually are. Substantive testing is increased. E3

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