Rome,CPA,is Examining the Internal Control of Smack,Inc

question 116

Multiple Choice

Rome,CPA,is examining the internal control of Smack,Inc.Rome has established a risk of overreliance of 10%,an expected population deviation rate of 1%,and a tolerable rate of deviation of 5%. Ignore your answer to question 85.Assume that a sample of 100 items was examined and 5 deviations were noted.What is the upper limit rate of deviation?

• A) 5.0 percent.
• B) 9.1 percent.
• C) 10.0 percent.
• D) 10.3 percent.

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