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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