As a Result of Sampling Procedures Applied as Tests of Controls

question 247

Multiple Choice

As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk lower than appropriate. The most likely Explanation: for this situation is that:

• A) The deviation rates of both the auditor's sample and the population exceed the tolerable rate.
• B) The deviation rates of both the auditor's sample and the population is less than the tolerable rate.
• C) The deviation rate in the auditor's sample is less than the tolerable rate, but the deviation rate in the population exceeds the tolerable rate.
• D) The deviation rate in the auditor's sample exceeds the tolerable rate, but the deviation rate in the population is less than the tolerable rate.

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Definitions:

Productivity

The efficiency with which input resources are converted into outputs, often measured as output per unit of input.

Marginal Product

The increase in output that results from employing one more unit of a particular factor of production, holding all else constant.

Radios

Electronic devices designed to receive and amplify audio broadcasts from radio stations, allowing for the wireless transmission of music, news, and other types of content.

Manufacture

The process of producing goods through the use of machinery, tools, and labor, often on a large scale.