If Auditors Conducting Attributes Sampling Found That the Entity Deviated

question 61

Multiple Choice

If auditors conducting attributes sampling found that the entity deviated from a prescribed control in nine of the first 10 items examined, the auditor is most likely to:

• A)increase sample size.
• B)increase the computed upper deviation rate.
• C)decrease the tolerable deviation rate.
• D)stop the test and increase control risk.

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Definitions:

Lump Sum Payment

A large single payment made at a particular time, especially in the context of paying off a loan or settling a deal.

Leisure

Free time available to an individual after all work or economic activities have been completed, often used for rest, recreation, or other personal activities.

Utility Function

A mathematical representation of how consumer preferences over bundles of goods or services translate into levels of satisfaction or utility.

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Time free from the demands of work or duty, where individuals may choose to engage in activities for relaxation, enjoyment, or other personal satisfaction.