Multiple Choice
What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations, assuming the tolerable deviation rate is 5%, the expected population deviation rate is 3% and the allowance for sampling risk is 2%?
A) Modify planned reliance on the control because the tolerable rate plus the allowance for sampling risk exceeds the expected population deviation rate.
B) Accept the sample results as support for planned reliance on the control because the tolerable rate less the allowance or sampling risk equals the expected population deviation rate.
C) Modify planned reliance on the control because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.
D) Accept the sample results as support for planned reliance on the control because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.
Correct Answer:
Verified
Correct Answer:
Verified
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