Multiple Choice
What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in four exceptions if the tolerable exception rate is 5%, the expected population exception 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 less the allowance for sampling risk equals the expected population exception rate.
B) Modify planned reliance on the control because the sample exception rate plus the allowance for sampling risk exceeds the tolerable rate.
C) Modify planned reliance on the control because the tolerable rate plus the allowance for sampling risk exceeds the expected population exception 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
Q20: In systematic sample selection, the population size
Q20: Which of the following is the risk
Q27: The relationship of tolerable exception rate (TER)
Q27: Which one of the choices below is
Q28: Match eight of the terms (a-k) with
Q33: If the result obtained from a particular
Q34: Acceptable risk of assessing control risk too
Q35: The auditor's best estimate of the population
Q72: If an auditor judgmentally selects a sample
Q87: Which of the following is not a