Situation Effect Select an option below O Increase 1. The allowable risk of assessing the risk of material misstatement too low and the tolerable deviation rate increased. The expected population deviation rate decreased. 2. The auditor determined that an increase in the tolerable misstatement was appropriate. 3. When planning a statistical sample for a test of controls, the auditor increased the expected population deviation rate because of the results of the prior year's tests of controls and the understanding of the control environment. O Decrease 4. The engagement partner increased the assessed risk of material misstatement for the audit. RESET CANCEL ACCEPT 5. Due to more relaxed credit terms, the number of accounts receivable quadrupled during the current year. 6. As a consequence of a change in the customer base for accounts receivable, the auditor determined that the variability in their balances increased the risk of material misstatement