Assume That the Audit Team Established a Tolerable Rate of Deviation

question 26

Multiple Choice

Assume that the audit team established a tolerable rate of deviation of 5%,an expected population deviation rate of 1%,and desired to control the risk of overreliance to 5%.What is the appropriate sample size in this situation?

• A)77 items.
• B)93 items.
• C)132 items.
• D)124 items.

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Definitions:

Organisational Goals

Objectives that a company or an organization aims to achieve, which guide its internal decision-making processes.

Control Operations

Activities or procedures implemented to monitor and regulate processes and ensure they meet performance standards.

External Users

Individuals or entities outside of an organization who have an interest in the organization's financial information, such as investors and creditors.

Investment Decisions

Choices made by individuals or enterprises regarding where, when, and how much to invest in order to achieve financial goals or maximize returns.