As the Auditor,you Are Assessing the Proper Sample Size to Use

question 28

Multiple Choice

As the auditor,you are assessing the proper sample size to use in testing controls.When using attributes sampling,which of the following is most correct?

• A)A 10% change in population size will have the least effect on sample size.
• B)A 10% change in the tolerable deviation rate will have the least effect on sample size.
• C)A 10% change in the expected deviation rate will have the least effect on sample size.
• D)A 10% change in the tolerable will have the least effect on sample size.

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Definitions:

Open Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.

Vault Cash

Physical currency held by banks within their vaults, used to meet customer withdrawals and other cash needs.

Primary Reserve

It is the part of a country's reservable deposits held in cash or in deposits with the central bank, used to manage liquidity and fulfill regulatory requirements.