Assume the auditor decides a control is not effective if there is a population exception rate of 3%. Assume the auditor accepts this control as effective based on test of control with a sample of 100 items that had 2 exceptions. If the population actually has a 6% exception rate, the auditor correctly accepted the population because the sample was representative of the population.

Question

Quizplus · Accepted Answer

The auditor incorrectly accepted the control as effective because the actual population exception rate of 6% exceeds the acceptable rate of 3%, indicating the sample was not representative of the population's true condition.

Assume the Auditor Decides a Control Is Not Effective If