An Auditor Selects a Sample of 50 for a Test

question 55

Multiple Choice

An auditor selects a sample of 50 for a test of controls and finds two transactions are not processed in accordance with the controls. The tolerable deviation rate was specified as six per cent. Using the extrapolation approach specified in the auditing standards, the sample results:

• A) do not support the planned assessed level of control risk.
• B) support the planned assessed level of control risk.
• C) are indeterminate without more data.
• D) None of the given answers.

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Definitions:

Lethal Means

Methods or devices that are capable of causing death.

Suicide Rate

Suicide rate is a statistical measure that reflects the number of suicides occurring in a given population during a specified period of time.

Minorities

Groups of people differentiated from the societal majority through ethnic, racial, religious, or cultural identity, often facing different degrees of economic, social, or political challenges.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that leads to avoidance behaviors and can significantly impact daily functioning.