In Audit Sampling, an Advance Estimate of the Deviation Rate

question 137

Multiple Choice

In audit sampling, an advance estimate of the deviation rate is necessary to plan the appropriate sample size.The relationship of estimated population deviation rate (EPDR) to sample size is:

• A) direct (small EPDR = small sample).
• B) indeterminate.
• C) inverse (small EPDR = large sample).
• D) a variable (sometimes small, sometimes large) dependent on other factors present.

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