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

The expected population deviation rate is a crucial factor in determining the sample size for a test of controls. The auditor must consider the size of the population and the inherent risk associated with it in determining an appropriate sample size. Additionally, the tolerable deviation rate and the desired confidence level must also be considered, as well as the risks of assessing control risk too high or of incorrect rejection. However, among these options, the expected population deviation rate is the most important factor.

To Determine the Sample Size for a Test of Controls