Multiple Choice
What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations if the tolerable rate of deviation is 5%,the expected population deviation rate is 3%,and the allowance for sampling risk is 2%?
A) Accept the sample results as support for planned reliance on the control because the tolerable rate of deviation less then allowance for sampling risk equals the expected population deviation rate.
B) Modify planned reliance on the control because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
C) Modify planned reliance on the control because the tolerable rate of deviation plus the allowance for sampling risk exceeds the expected population deviation rate.
D) Accept the sample results as support for planned reliance on the control because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
Correct Answer:
Verified
Correct Answer:
Verified
Q72: The AICPA has developed sample size tables
Q73: For which of the following audit tests
Q74: In evaluating this sample,the auditor decided to
Q75: The allowance for sampling risk was:<br>A)5.5%.<br>B)4.5%.<br>C)3.5%.<br>D)1%.
Q76: In order for the auditor to decide
Q78: Walters created a list of all
Q79: As a result of tests of controls,an
Q80: Which of the following does not have
Q81: The audit team is planning to examine
Q82: Lincoln,CPA,selected a sample of 100 items by