If auditors conducting attributes sampling found that the entity deviated from a prescribed control in nine of the first 10 items examined, the auditor is most likely to:
A)increase sample size.
B)increase the computed upper deviation rate.
C)decrease the tolerable deviation rate.
D)stop the test and increase control risk.

Question

Quizplus · Accepted Answer

Given the high deviation rate found in the initial items examined, the auditor is likely to conclude that the control is not effective. Stopping the test and increasing control risk reflects the auditor's assessment that reliance on the control is not justified, making further testing of the control unnecessary.

If Auditors Conducting Attributes Sampling Found That the Entity Deviated