When Using a Statistical Sampling Plan for a Test of Controls

question 61

Multiple Choice

When using a statistical sampling plan for a test of controls, the auditor would probably require a smaller sample if the:

• A) tolerable deviation rate decreases.
• B) population increases.
• C) expected deviation rate increases.
• D) allowable risk of over-reliance increases.

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Definitions:

Flextime

A flexible hours work arrangement allowing employees to alter workday start and end times while maintaining a set number of working hours.

Overtime Rate

The rate of compensation paid to employees for hours worked in excess of their regular working hours, typically higher than the standard pay rate.

Hourly Rate

A measure of compensation or payment calculated based on the number of hours worked.

Wage

The fixed regular payment made by an employer to an employee, typically expressed on an hourly, daily, or piecework basis.