An Auditor Planning Tests of Controls Specifies a Risk of Assessing

question 22

Multiple Choice

An auditor planning tests of controls specifies a risk of assessing control risk too low of five per cent and a tolerable deviation rate of six per cent and expects one deviation. For these specifications, the planned sample size should be: (Use the following table to determine your answer.)
Number of factors for sampling risks of:

• A) 60.
• B) 50.
• C) 80.
• D) Some other amount.

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Definitions:

Tattoo

A form of body modification where a design is made by inserting ink, dyes, and pigments, either indelible or temporary, into the dermis layer of the skin to change the pigment.

Economic Stability

A state where an economy experiences stable growth, low inflation rates, and low unemployment rates, contributing to overall economic health.

Economic Growth

A rise in the potential of an economy to output goods and services between one time frame and another.

Low Inflation

A situation characterized by a relatively slow rate of increase in the general price level of goods and services over a period of time.