As the Auditor, You Are Assessing the Proper Sample Size

question 135

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 deviation rate will have the most effect on sample size.

Assess how shifts in the budget line affect consumer choices and relate to economic concepts of normal and inferior goods.

Understand the principles and practices of various pay plans, including merit pay, lump sum bonuses, and gain-sharing.

Identify the psychological impacts of pay secrecy and pay transparency on employees and managers.

Analyze the effects of pay plans on employee performance, including the relationship between pay and motivation.

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Definitions:

Earn

To receive a payment or reward in exchange for work done or services provided.

Given Period

A specific span of time during which something is done or occurs.

Income

Income refers to the money received, often measured on a regular basis, for work or through investments.

Social Relations

The network of relationships that exist among individuals within a society, shaped by social structures, patterns, and practices.