If a Particular Internal Control Is Not Followed by the Client

question 64

True/False

If a particular internal control is not followed by the client exactly 6% of the time, and the auditor's tests of that control find three control violations in a sample of 50, the sample is considered to be representative.

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Definitions:

Spectator

An observer who watches or attends an event or activity without taking part in it.

Law-Of-Numbers

A principle suggesting that larger numbers of trials or samples lead to more stable and accurate averages and outcomes.

Group Think

A situation in collective decision-making processes where the pressure to agree or fit in causes outcomes that are irrational or lacking in effectiveness.

Cohesiveness

The degree to which members of a group are attracted to each other and motivated to stay in the group, often leading to improved performance and satisfaction.