What is an auditor's evaluation of a statistical sample for attributes when a test of 50 documents results in 3 deviations if tolerable rate is 7%, the expected population deviation rate is 5%, and the allowance for sampling risk is 2%.
A) Modify the planned assessed level of control risk because the tolerable rate plus the allowance for sampling risk exceeds the expected population deviation rate.
B) Accept the sample results as support for the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.
C) Accept the sample results as support for the planned assessed level of control risk because the tolerable rate less the allowance for sampling risk equals the expected population deviation rate.
D) Modify the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.
Correct Answer:
Verified
Q516: This question will represent a statement, question,
Q517: An auditor should consider the tolerable rate
Q518: An audit partner is developing an office
Q519: This question will represent a statement, question,
Q520: An auditor is determining the sample size
Q522: Which of the following strategies would a
Q523: In parallel simulation, actual client data are
Q524: When an auditor tests a computerized accounting
Q525: An auditor who wishes to capture an
Q526: Which of the following most likely would
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents