An Auditor Who Uses Statistical Sampling for Attributes in Testing

question 74

Multiple Choice

An auditor who uses statistical sampling for attributes in testing internal controls should increase the assessed level of control risk when the

• A)sample rate of exceptions is less than the expected rate of exception used in planning the sample.
• B)tolerable exception rate less the allowance for sampling risk exceeds the sample rate of deviation.
• C)sample rate of exceptions plus the allowance for sampling risk exceeds the tolerable exception rate.
• D)sample rate of exceptions plus the allowance for sampling risk equals the tolerable exception rate.

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Definitions:

Embryonic Stage

The period in prenatal development from about 2 to 8 weeks after conception, where major organs and structures begin to develop.

Germinal Stage

Refers to the first two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Vital Organs

Essential organs necessary for survival, including the heart, brain, lungs, liver, and kidneys.

Prenatal Development

The progression from being conceived to being born, involving maturation and development inside the uterus.