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.