The Occurrence Rate or Exception Rate for Attribute Sampling Is

question 58

Multiple Choice

The occurrence rate or exception rate for attribute sampling is defined as the

• A)exception rate that the auditor will permit in the population and still be willing to use the assessed control risk.
• B)risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than materiality.
• C)exception rate that the auditor expects to find in the population before testing begins.
• D)ratio of the items containing a specific attribute to the total number of population items.

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Definitions:

Additional Paid-in Capital

The amount of capital from the issuance of shares that is more than the par value of the shares, reflecting the excess paid by investors above the nominal value.

Deferred Compensation

A portion of an employee's income that is paid out at a later date, often used as a retirement benefit.

Grant Date

The specific date on which stock options or grants are awarded to an employee under a stock option plan.

Fair Value Method

The Fair Value Method is an accounting approach that measures and reports assets and liabilities at their fair value or the price they would receive in a current market transaction.