An Auditor Wants to Perform a Test of Controls for a Sensitive

question 106

Multiple Choice

An auditor wants to perform a test of controls for a sensitive control.If she discovers even one deviation,she will reject the control as unacceptable.She is especially concerned about finding a deviation rate of more than 1 percent.Using discovery sampling and the sample evaluation table for 5 percent risk of overreliance,what sample size should she use?

• A) 20.
• B) 150.
• C) 300.
• D) 500.

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Definitions:

Employers

Individuals or organizations that hire and pay employees for their labor.

Educational Level

The highest degree or level of school completed, often influencing employment opportunities, income potential, and social status.

High-Productivity People

Individuals who are able to produce a significant amount of output or work efficiently within a shorter period compared to others.

Threshold

The level, point, or value above which something is true or will occur, and below which it is not or will not occur.