An Audit Team Designed a Sample That Would Provide a 10

question 8

Multiple Choice

An audit team designed a sample that would provide a 10 percent risk of overreliance that not more than 7 percent of sales invoices lacked credit approval.From previous audits,the audit team expected that 3 percent of the sample invoices lacked proper approval.From the sample of 90 invoices,7 were found to lack credit approval.Using AICPA sample evaluation tables,the upper limit rate of deviation was

• A) 3.3%.
• B) 4.5%.
• C) 7.8%.
• D) 12.8%.

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Definitions:

Text Mining

The process of deriving high-quality information from text through the identification of patterns and trends via means such as statistical pattern learning.

Extract Insights

The process of analyzing data or information to discover significant patterns, trends, or understandings.

Transitions

Processes or periods of changing from one state or condition to another, often requiring adaptation or adjustment.

Comparison

A process of evaluating two or more items to establish their similarities or differences.