In Order for the Auditor to Decide to Perform Tests

question 81

Multiple Choice

In order for the auditor to decide to perform tests of controls,which of the following relationships should exist?

• A) The sampling risk should be less than 5 percent.
• B) The tolerable rate of deviation should exceed the expected population deviation rate.
• C) The expected population deviation rate should exceed the risk of overreliance.
• D) The expected population deviation rate should exceed the tolerable rate of deviation.

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Definitions:

Gesellschaft

A term used by Ferdinand Tönnies to describe a modern industrial society characterized by impersonal and indirect social relationships, focusing on individual self-interest.

Symbolic Interactionists

Scholars within the field of sociology who study how people use symbols to create meaning, establish their view of the world, and communicate with one another.

Fads and Fashions

Trends that are temporarily popular, often in the realms of clothing, diet, or lifestyle, but which can change rapidly.

Malthus

Thomas Robert Malthus, an 18th-century British economist and demographer best known for his theory that population growth will always tend to outstrip the food supply.