For an Attributes Sampling Plan, the Tolerable Deviation Rate Is

question 30

Multiple Choice

For an attributes sampling plan, the tolerable deviation rate is 4%, the computed upper deviation rate is 7%, the sample deviation rate is 3%, and the risk of assessing control risk too low is 5%. Which of the following is true?

• A)The auditor must increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rate.
• B)The auditor is likely to increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rate.
• C)The auditor must increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate.
• D)The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate.

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Definitions:

7-Point Scale

A rating system used in surveys and questionnaires, allowing respondents to indicate their opinion or preference on a seven-level scale.

5% Significance Level

A threshold in hypothesis testing indicating that the probability of observing the data, assuming the null hypothesis is true, is less than 5%.

Wilcoxon Rank Sum Test

A nonparametric statistical test used to compare two independent samples to assess whether their population mean ranks differ.

Total Rankings

A method of ordering or arranging items according to their overall score or performance on certain criteria.