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

question 23

Multiple Choice

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations, assuming 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 tolerable rate less the allowance or sampling risk equals the expected population deviation rate.
• C) Modify planned reliance on the control because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.
• D) 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.

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Definitions:

Infant Mortality

The mortality rate of infants below the age of one, frequently employed as a measure of a community's health status and overall well-being.

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance and must be paid by the patient.

Doctor Visits

Occasions when patients seek professional medical advice, diagnosis, or treatment from physicians in a healthcare setting.

Health Care Rationed

The allocation of healthcare resources in a manner that limits access to certain treatments or services to manage costs and resources effectively.