When Audit Procedures Have Been Completed for an Attributes Sampling

question 62

Multiple Choice

When audit procedures have been completed for an attributes sampling application, the auditor must generalize from the sample to the population.Which of the following statements would be incorrect regarding this process?

• A)The auditor would use an attributes sampling table to determine the computed upper exception rate.
• B)If the sample size is not equal to those provided for in the attributes sampling evaluation tables, the auditor cannot use attribute sampling.
• C)It would be wrong for the auditor to conclude that the population exception rate is exactly the same as the sample exception rate.
• D)In selecting the table corresponding to the ARO, it should be the same as the ARO used for determining the initial sample size.

Distinguish between verbal and nonverbal communication forms.

Develop strategies for meaningful communication in diverse or multicultural contexts.

Understand the concept of cultural competency.

Assess the appropriate use of digital communication in confronting difficult situations at the workplace.

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Definitions:

Incremental Interest Rate

The additional interest rate applied to borrowing beyond a predetermined threshold, or the rate used to evaluate the cost of potential projects over the cost of capital.

Present Value

The valuation of an expected income stream determined by discounting the future income to its value in today's dollars.

Interest Expense

This is the cost incurred by an entity for borrowed funds, and it is typically reported on the income statement as a non-operating expense.

Premium Account

An account credited with the amount by which a security is issued above its par value, featuring benefits or terms superior to those of standard accounts.