What Is an Auditor's Evaluation of a Statistical Sample for Attributes

question 77

Multiple Choice

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations if the tolerable rate of deviation is 5%,the expected population deviation rate is 3%,and the allowance for sampling risk is 2%?

• A)Accept the sample results as support for planned reliance on the control because the tolerable rate of deviation less then allowance for sampling risk equals the expected population deviation rate.
• B)Modify planned reliance on the control because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
• C)Modify planned reliance on the control because the tolerable rate of deviation plus the allowance for sampling risk exceeds the expected population deviation rate.
• D)Accept the sample results as support for planned reliance on the control because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.

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Definitions:

Incidental Beneficiary

An individual or entity that gains unintentional benefit from a contract to which they are not a party.

Delegation

The act of assigning responsibility or authority from one person or group to another, often seen within organizational structures.

Painting a Portrait

The artistic process of creating a representation of a person, particularly their face, using paint on a surface.

Third-party Beneficiary Contract

A contract designed in such a way that a party not directly involved in the agreement receives a benefit from the contract.