What Is an Auditor's Evaluation of a Statistical Sample for Attributes

question 129

Multiple Choice

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in four deviations if the tolerable deviation rate is 5%, the expected population deviation rate is 3% and the allowance for sampling risk is 2%?

• A) Modify planned reliance on the control because the tolerable rate plus the allowance for sampling risk exceeds the expected population deviation rate.
• B) Accept the sample results as support for planned reliance on the control because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate
• C) Accept the sample results as support for planned reliance on the control because the tolerable rate less the allowance or sampling risk equals the expected population deviation rate
• D) Modify planned reliance on the control because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.

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