If an auditor judgmentally selects a sample of one hundred items from a population and finds two exceptions, the auditor
A) can conclude that the sample exception rate is 2%.
B) can conclude that the population exception rate is 2%.
C) can calculate the highest exception rate expected in the population.
D) cannot make any conclusions about either the sample or the population.

Question

Quizplus · Accepted Answer

The sample exception rate is calculated by dividing the number of exceptions by the sample size, which in this case is 2 exceptions out of 100 items, resulting in a 2% sample exception rate.

If an Auditor Judgmentally Selects a Sample of One Hundred