To Determine the Sample Size for a Test of Controls

question 2

Multiple Choice

To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and the:

• A)expected population deviation rate.
• B)computed upper precision limit.
• C)risk of assessing control risk too high.
• D)risk of incorrect rejection.

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Definitions:

Standard Normal Random Variable

A normally distributed random variable characterized by a mean of 0 and a standard deviation of 1.

P

A probability value that reflects the likelihood of obtaining test results at least as extreme as the results actually observed, during the assumption that the null hypothesis is correct.

z

A statistical measure that represents the number of standard deviations a data point is from the mean.

Normally Distributed Random Variable

A variable that follows a Gaussian distribution, characterized by its bell-shaped curve, where the mean, median, and mode are all equal.