Which of the Following Statements Is Correct Concerning Statistical Sampling

question 41

Multiple Choice

Which of the following statements is correct concerning statistical sampling in tests of controls?

• A)As the population size increases, the sample size should increase proportionately.
• B)Deviations from specific internal control procedures at a given rate ordinarily result in misstatements at a lower rate.
• C)There is an inverse relationship between the expected population deviation rate and the sample size.
• D)In determining tolerable deviation rate, an auditor considers detection risk and the sample size.

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Definitions:

Consideration

A fundamental concept in contract law that refers to something of value exchanged between parties, which is required for a contract to be legally enforceable.

Negligently

Acting with a lack of reasonable care or concern for the consequences, leading to potential harm or damage.

Legal Detriment

A concept in contract law where a party receives something of value in exchange for foregoing a legal right, forming a basis for a binding agreement.

Legal Benefit

An advantage or gain, especially in a contractual context, that a party receives, which constitutes consideration necessary for a valid contract.