When Deciding the Acceptability of the Population

question 57

Multiple Choice

When deciding the acceptability of the population,

• A) the methodology for deciding the acceptability of the population for attributes differs from determining the acceptability for nonstatistical sampling.
• B) before the population can be considered acceptable, the CUER determined on the basis of the actual sample results must be less than or equal to TER when both are based on the same ARO.
• C) when the CUER is greater than the TER, the auditor must increase the sample size.
• D) the CUER is compared with the TER in total, not for each attribute.

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Definitions:

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The industrial process of producing furniture items, combining various materials such as wood, metal, and textiles.

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The activity or profession of producing advertisements for commercial products or services, aimed at influencing the buying behavior of consumers.

Cost Driver

A factor that causes the cost of an activity or process to change, such as labor hours or machine hours.

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A vehicle designed specifically for transporting cargo, particularly goods to be delivered to consumers or businesses.