What Is an Auditor's Evaluation of a Statistical Sample for Attributes

question 77

Multiple Choice

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations if the tolerable rate of deviation is 5%,the expected population deviation rate is 3%,and the allowance for sampling risk is 2%?

• A)Accept the sample results as support for planned reliance on the control because the tolerable rate of deviation less then allowance for sampling risk equals the expected population deviation rate.
• B)Modify planned reliance on the control because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
• C)Modify planned reliance on the control because the tolerable rate of deviation plus the allowance for sampling risk exceeds the expected population deviation rate.
• D)Accept the sample results as support for planned reliance on the control because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.

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Definitions:

Memory

The cognitive process enabling humans to encode, store, retain, and subsequently retrieve information and past experiences.

Belmont Report

A foundational document in the ethics of human subjects research, outlining key principles including respect for persons, beneficence, and justice.

Autonomy

The capacity to make an informed, un-coerced decision independently.

Beneficence

In ethics, it refers to the moral obligation to act for the benefit of others, promoting their well-being.