The following table depicts the auditor’s estimated computed upper deviation rate compared...

The following table depicts the auditor’s estimated computed upper deviation rate compared with the tolerable deviation rate, and it depicts the true population deviation rate compared with the tolerable deviation rate.

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

a. 1.

b. 2.

c. 3.

d. 4.