An Auditor Who Uses Statistical Sampling for Attributes in Testing

question 42

Multiple Choice

An auditor who uses statistical sampling for attributes in testing internal controls should reduce the planned reliance on a prescribed control when the:

• A)Sample rate of deviation plus the allowance for sampling risk equals the tolerable rate of deviation.
• B)Sample rate of deviation is less than the expected rate of deviation used in planning the sample.
• C)Tolerable rate less the allowance for sampling risk exceeds the sample rate of deviation.
• D)Sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.

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Definitions:

Punishment

A consequence imposed for a violation of rules or norms, intended to discourage undesirable behavior.

Shaping

A method of conditioning by which successive approximations of a desired behavior are reinforced.

Natural Laws

Fundamental principles that govern the natural world, often described through physics and other sciences.

Skinner

B.F. Skinner, an influential American psychologist known for his research in behaviorism and operant conditioning.