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the diagram below depicts the auditor rsquo s estimated deviation rate compared with 602488

Items 1 and 2 are based on the following information:

The diagram below depicts the auditor’s estimated deviation rate compared with the tolerable rate, and also depicts the true population deviation rate compared with the tolerable rate.

In which of the situations would the auditor have properly concluded that control risk is at or below the planned assessed level?

  1. I.
  2. II.
  3. III.
  4. IV.

As a result of tests of controls, the auditor assesses control risk too high and thereby increases substantive testing. This is illustrated by situation

  1. I.
  2. II.
  3. III.
  4. IV.

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