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:

Babbling Patterns

The repetitive vocalizing of consonant and vowel combinations by infants, considered a precursor to the development of language.

Preoperational

Refers to a stage in Piaget's theory of cognitive development where children aged 2-7 engage in symbolic play but have not yet mastered the concept of logical operations.

Cognitive Development

The process through which individuals acquire and understand knowledge, including thinking, problem-solving, and decision-making abilities, over the course of their life.