Which of the following is not a judgment or estimate auditors must make when performing attributes sampling?
A)Tolerable rate of deviation.
B)Expected population deviation rate.
C)Sample rate of deviation.
D)Risk of overreliance.

Question

Quizplus · Accepted Answer

All of the options (A, B, D) are judgments or estimates that auditors must make when performing attributes sampling. The tolerable rate of deviation is the maximum rate of deviation that the auditor is willing to accept without modifying the planned assessed level of control risk. The expected population deviation rate is the auditor's best estimate of the rate of deviation in the population. The risk of overreliance is the risk that the auditor places too much reliance on the effectiveness of the internal control and fails to detect a material misstatement. The sample rate of deviation is the rate of deviation observed in the sample and is used to estimate the population deviation rate. Therefore, the correct answer is C, the sample rate of deviation is not a judgment or estimate that auditors must make when performing attributes sampling, it is an outcome of the sampling process.

Which of the Following Is Not a Judgment or Estimate