Based on a Five Per Cent Risk of Assessing Control

question 24

Multiple Choice

Based on a five per cent risk of assessing control risk too low, how would an auditor interpret a computed upper deviation rate of seven per cent?

• A) There is a five per cent chance that the deviation rate in the population is less than seven per cent.
• B) The auditor is willing to tolerate a deviation rate of seven per cent before deciding not to rely on the control.
• C) There is a 95 per cent chance that the deviation rate in the population equals seven per cent.
• D) There is a five per cent chance that the deviation rate in the population exceeds seven per cent.

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Definitions:

Sphincter Control

The ability to regulate the muscles that close and open passages in the body, crucial for bowel and bladder management.

Anterior Fontanel

The soft spot on the top of a baby's head where the skull bones have not yet fused together, allowing for brain growth.

Left- or Right-handedness

The natural preference of using one hand over the other for tasks and activities, a trait found in the majority of the human population.

Medicines

Substances or preparations used in treating or preventing diseases; pharmaceutical drugs.