Which of the following statements is correct concerning statistical sampling in tests of controls?

Question

Quizplus · Accepted Answer

Choice "B" is correct. Deviations from control activities do not necessarily result in misstatements. Therefore, deviations from pertinent control activities at a given rate would ordinarily be expected to result in misstatements at a lower rate. Choice "A" is incorrect. In tests of controls, population size has virtually no effect on sample size unless the population is small. Choice "C" is incorrect. There is a direct relationship between expected deviation rate and sample size. Choice "D" is incorrect. Detection risk and sample size are not factors in determining the tolerable deviation rate in a test of controls. The tolerable rate is simply the maximum rate that the auditor is willing to accept without altering his or her planned level of reliance.

Which of the Following Statements Is Correct Concerning Statistical Sampling