An Auditor Who Uses Statistical Sampling for Attributes in Testing

question 3

Multiple Choice

An auditor who uses statistical sampling for attributes in testing internal controls is most likely to reduce the planned reliance on a prescribed control when the

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

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Definitions:

Appellate Court

A court that has the authority to review and make decisions on cases that have been previously judged in a lower court.

Judgment N.o.v.

Short for "judgment non obstante veredicto," a legal motion requesting the court to reverse the jury's verdict on the grounds that the jury could not have legally provided such verdict based on the facts.

Matter of Law

An issue that is determined by statutes, legal precedent, or constitution, rather than by the factual situation of a case.

Appellate Court

a court that has the authority to review and make changes to the decisions of lower courts.