To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and the:
A)expected population deviation rate.
B)computed upper precision limit.
C)risk of assessing control risk too high.
D)risk of incorrect rejection.

Question

Quizplus · Accepted Answer

When determining the sample size for a test of controls, the auditor should consider the tolerable deviation rate, the desired confidence level, and the expected population deviation rate. The expected population deviation rate is used to calculate the initial sample size using statistical sampling techniques such as the formula for attribute sampling. The computed upper precision limit and the risk of assessing control risk too high are used to evaluate the results of the test of controls once the sample has been taken. The risk of incorrect rejection is not relevant to determining the sample size for a test of controls.

To Determine the Sample Size for a Test of Controls