Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 139

Baily Cox, an audit manager, judged that the test of controls of the company's 50,000 purchase transactions should be based on a tolerable rate of deviation of 6 percent, a risk of overreliance of 5 percent, and an expected population deviation rate of 3 percent. Using AICPA sample size tables, Cox determined that the appropriate sample size in this situation would be
A) 49.
B) 78.
C) 132.
D) 195.