If an Auditor Tested 50 Transactions and Found Two Deviations

question 6

Multiple Choice

If an auditor tested 50 transactions and found two deviations from an important control activity,the auditor could conclude that

• A) the tolerable rate is 4%.
• B) the critical rate of occurrence is 4%.
• C) the sample rate of deviation is 4%.
• D) the expected population deviation rate is 4%.

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Definitions:

Cash Discount

A reduction in price offered to a customer for paying in cash or within a specified short payment period.

Book Salesperson

An individual who specializes in selling books, typically working for publishers or bookstores and often responsible for organizing book fairs or visiting schools and libraries.

Cumulative Quantity

The total amount of a particular good or service that has been produced or delivered over a specific period.

Dog Treats

Snacks specifically formulated and intended for consumption by dogs, often used as a form of reward or training aid.