When deciding the acceptability of the population,
A) the methodology for deciding the acceptability of the population for attributes differs from determining the acceptability for nonstatistical sampling.
B) before the population can be considered acceptable, the CUER determined on the basis of the actual sample results must be less than or equal to TER when both are based on the same ARO.
C) when the CUER is greater than the TER, the auditor must increase the sample size.
D) the CUER is compared with the TER in total, not for each attribute.

Question

Quizplus · Accepted Answer

Before the population can be considered acceptable, the computed upper exception rate (CUER) determined on the basis of the actual sample results must be less than or equal to the tolerable exception rate (TER) when both are based on the same attribute reliability objective (ARO).

When Deciding the Acceptability of the Population