An Auditor Who Uses Statistical Sampling for Attributes in Testing

question 45

Multiple Choice

An auditor who uses statistical sampling for attributes in testing internal controls is most likely to reduce the planned reliance on a prescribed control when the:

• A)sample deviation rate plus the allowance for sampling risk equals the tolerable deviation rate.
• B)sample deviation rate is less than the expected population deviation rate used in planning the sample.
• C)tolerable deviation rate less the allowance for sampling risk exceeds the sample deviation rate.
• D)sample deviation rate plus the allowance for sampling risk exceeds the tolerable deviation rate.

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Definitions:

Activation

The process of making something active or operative, particularly in references to systems, substances, or biological functions.

Paraphilias

Unusual or atypical sexual interests towards objects, situations, or individuals, which may or may not lead to distress or harm.

Exhibitionism

A psychological condition or behavior characterized by a desire to expose one's genitals or sexual organs to others, usually strangers, for sexual gratification.

Fetishism

A sexual fixation on a nonliving object or non-genital body part.