You Are Testing Controls Over Accounts Receivable and Are Determining

Multiple Choice

You are testing controls over accounts receivable and are determining if the appropriate credit authorization was made by an authorized person. Your sample size is 40 and your computed upper deviation rate is 5%. On the first 10 items sampled you have found 8 deviations. You would most likely:

A) continue with the other 30 items.
B) revisit the sample size calculations.
C) increase the tolerable deviation rate.
D) stop the test and re-set control risk for accounts receivable.