If an Auditor Judgmentally Selects a Sample of One Hundred

question 72

Multiple Choice

If an auditor judgmentally selects a sample of one hundred items from a population and finds two exceptions, the auditor

• A) can conclude that the sample exception rate is 2%.
• B) can conclude that the population exception rate is 2%.
• C) can calculate the highest exception rate expected in the population.
• D) cannot make any conclusions about either the sample or the population.

---

Definitions:

Flexible

Capable of adapting to new, different, or changing requirements or situations with ease.

Rigid

Characterized by inflexibility or strictness in structures, systems, or attitudes, potentially hindering adaptability or progress.

Genuine

refers to being truly what something is said to be; authentic and sincere in one's actions, intentions, or character.

Manipulative

Involving the skillful handling or controlling of situations or people to achieve one's own goals, often in a manner considered deceitful or unfair.