Question: If an audit team calculated an upper limit rate of deviation of 5 percent when the tolerable rate of deviation was 4 percent, both at

If an audit team calculated an upper limit rate of deviation of 5 percent when the tolerable rate of deviation was 4 percent, both at the same risk of overreliance, control risk should be
a. Assessed at the level associated with the 4 percent tolerable rate of deviation.
b. Increased and substantive procedures should be adjusted accordingly.
c. Assessed at the maximum level 100 percent) because the company’s performance failed the test.
d. Decreased and substantive procedures should be adjusted accordingly.

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